OSS Association Evaluated the First Quarter of 2025!
OSS Association Evaluated the First Quarter of 2025!
The stagnant trend observed in the automotive aftermarket throughout 2024 continued into the first quarter of 2025. The sector, which failed to achieve growth in sales, exports, and employment during Q1 2025, expects a slowdown in the decline in sales in the second quarter. According to the Automotive Aftermarket Products and Services Association’s (OSS) Q1 2025 Sectoral Assessment Survey, domestic sales in the first quarter of 2025 decreased by an average of 2.57% in USD terms compared to the same period of 2024. While 35.7% of manufacturing members plan to invest in the next three months, the most prominent issue observed in Q1 2025 was the “excessive increase in costs.” According to the survey, “cash flow problems” and “loss of business and revenue” are emerging as increasingly significant issues for members.
The OSS Association evaluated the first quarter of 2025 in the context of the automotive aftermarket through a survey conducted with the participation of its members. According to the OSS Q1 2025 Sectoral Assessment Survey, the automotive aftermarket sector had a slow start to the year. The survey revealed that, compared to the first quarter of 2024, domestic sales in USD terms fell by an average of 2.57% in Q1 2025. During this period, sales of distributor members dropped by 2.25% in USD terms, while sales of manufacturer members declined by 3.04%.
Emphasizing that this decline is not merely numerical but also indicative of challenges in sectoral confidence and motivation, OSS Chairman Ali Özçete stated: “The parallel decline in sales among both manufacturer and distributor members shows that the issue affects all players in the market. The weakening of purchasing power, postponed maintenance and repair decisions, and the struggle of businesses in managing costs are negatively impacting the dynamics of the domestic market.
No Sales Increase Expected in Q2!
The survey also included expectations for the second quarter of 2025. Accordingly, it was observed that a 0.59% decrease in domestic sales (in USD terms) is expected in Q2 2025. While the rate of collection processes stood at 45.1% in the last quarter of 2024, it declined to 40.8% in the first quarter of 2025. Among OSS members, 41% stated that the collection process had worsened, while only 8.8% said it had improved.
Commenting on the results, OSS Chairman Ali Özçete said:
“These figures show us that the sector does not expect a dynamic recovery in the second quarter of the year. Actual commercial activity and sectoral observations confirm this ongoing stagnation. Factors such as exchange rate pressure, difficulties in accessing finance, and the resulting cautious approach of businesses continue to limit market activity.”
Özçete also highlighted the deterioration in collection processes as another major factor putting pressure on sales, stating:
“This situation directly affects not only current cash flow but also the decision-making processes of businesses. The inability to collect receivables threatens the operational capacity of businesses and frequently leads to the postponement of new investments.
57.4% of the Sector Maintained Its Employment Levels!
According to the survey, 14.7% of members increased their employment compared to the last quarter of 2024, while 57.4% maintained their workforce. The rate of members who reported a decrease in employment stood at 27.9%. Employment trends among manufacturers and distributors were closely aligned.
The Most Critical Problem: Excessive Cost Increases!
Problems facing the sector were once again among the most striking parts of the survey. The top issue observed by members in the first quarter of 2025 was “excessive increases in costs,” cited by 79.4%. This was followed by “cash flow problems,” reported by 64.7% of participants, and “loss of business and turnover,” which 63.2% identified as the third most significant challenge. Additionally, 44.1% of respondents pointed to “shipping costs and delivery issues,” while 26.5% cited “exchange rates and currency fluctuations.” A further 16.2% mentioned customs-related challenges and employment-related issues as noteworthy problems.
Only 20.6% of Members Are Planning Investments!
The survey also examined investment trends within the sector. The proportion of members planning new investments over the next three months dropped to 20.6%, marking one of the lowest levels in recent periods. In the previous survey, 22.82% of manufacturer members had investment plans, which rose to 35.7% in the latest findings. However, this rate fell from 29.4% to 10% among distributor members. Meanwhile, 26.5% of respondents stated they expect the sector to improve over the next three months, while 29.4% foresee a further decline.
Production Remained Stable, Exports Slowed!
The average capacity utilization rate among manufacturers in Q1 2025 was 76.3%, compared to 78.15% for the whole of 2024. In the first quarter of 2025, production increased by 1.79% compared to the same period in 2024. However, exports in Q1 2025 declined by an average of 2.14% year-over-year.