OSS Association Evaluated the Year 2024!

OSS Association Evaluated the Year 2024!

The automotive aftermarket, which began 2024 cautiously, concluded the year in the same vein. In the last quarter of 2024, the sector experienced increased sales and exports while maintaining employment levels. For the first quarter of 2025, the sector anticipates a 1.48% increase in domestic sales in dollar terms compared to the first quarter of 2024.

According to the Automotive Aftermarket Products and Services Association's (OSS) 2024 Year-End Sectoral Assessment Survey, domestic sales in dollar terms increased by an average of 3.69% in the last quarter of 2024 compared to the same period in 2023. While 22.2% of producer members plan investments for the next three months, "excessive cost increases" remained the leading issue observed in the last quarter, as it was in the first three quarters. “Job and revenue loss,” which was not a significant problem in 2023 (at 14%), surged to 41% in 2024, becoming a prominent issue.

Speaking about the automotive aftermarket sector’s goals for 2025, OSS Association Chairman Ali Özçete stated, "As a sector, we aim to match and exceed the sales figures achieved in 2024. However, we do not foresee the rapid growth rates of past years over the next five years. One of the most critical factors that will impact 2025 sales figures is the issue of interest rate cuts. Lowering interest rates as of 2025 will revitalize the supply-demand balance in the domestic market. In terms of exports, one of the key goals is to drive growth by expanding into new markets, especially in African countries. Another crucial topic for our sector in 2025 will be the production-based investments by Chinese investors in Turkey. This situation will not only directly contribute to employment but also provide us with additional assurance in a year we expect to be relatively stagnant," he said.

The Automotive Aftermarket Products and Services Association (OSS) evaluated the last quarter of 2024 in the automotive aftermarket industry through a survey conducted with its members. According to the OSS Association's 2024 Year-End Sectoral Evaluation Survey, the automotive aftermarket industry maintained its stagnant course in the last quarter of 2024. The survey revealed that domestic sales increased by an average of 3.69% in dollar terms in the last quarter of 2024 compared to the same period in 2023. Distributor members experienced a 4.71% increase in dollar-denominated sales during this period, while manufacturer members recorded a 2.41% increase.

Investments by Chinese Brands Will Be a Highlight of 2025!

Ali Özçete, Chairman of the OSS Association, described 2024 as a year of moderate, stable performance for the automotive aftermarket industry. He stated, "The main reasons for this are the challenges of transitioning to electric vehicles and the ongoing global economic crisis. The decline in sales figures was significantly affected by difficulties in accessing credit, increased cash flow imbalances, rising energy and raw material costs, decreased demand in distributor firms, and extended vehicle maintenance intervals by users.

While we aim to match or exceed the sales figures achieved in 2024, we do not foresee rapid growth comparable to previous periods over the next five years. Among the most influential factors on sales figures in 2025 will be interest rate reductions. Lower interest rates are expected to revitalize supply-demand dynamics in the domestic market. In terms of exports, growth through new markets, especially in African countries, is a key objective. Another major topic of interest for the sector in 2025 will be the production-based investments by Chinese investors in Turkey," Özçete emphasized. " These investments will not only contribute directly to employment but also provide additional assurance for 2025, which is expected to remain a steady year. Furthermore, the significant increase in original spare part prices has driven users toward the aftermarket sector, positively impacting the industry. As a country, we are among the top contributors to the global automotive and aftermarket industries. Our primary goal for 2025 is to lead and guide the aftermarket sector by closely monitoring and adapting to new trends. Thanks to the strength we derive from our well-organized and robust manufacturer and distributor firms, our hope and confidence for the new year remain high."

Sales Increase Expected in the First Quarter

The OSS 2024 Year-End Sectoral Evaluation Survey also included expectations for the first quarter of 2025. The survey indicated an anticipated 1.48% increase in domestic sales in dollar terms in the first quarter of 2025 compared to the same period in 2024. OSS members expect an average increase of 9.67% in dollar-denominated domestic sales in 2025 compared to 2024. The collection process, which stood at 52.7% in the last quarter of 2023, declined to 45.1% in the last quarter of 2024. Among the OSS members, 18% stated that collection processes had improved, while 36.1% noted a deterioration.

Manufacturer Employment Growth Continues!

Among survey respondents, 42.6% increased their employment compared to 2023, while 36.1% maintained the same level. The proportion of members reporting a decrease in employment was 21.3%. Employment growth was more pronounced among distributor members compared to manufacturers.

Cost Increases Lead Industry Challenges!

One of the most striking sections of the survey highlighted the industry's challenges in the last quarter of 2024. "Excessive cost increases" were identified as the top issue by 86.9% of respondents, followed by "cash flow problems" at 50.8%. "Business and revenue loss" was cited by 41%, and "delivery problems related to cargo costs" ranked as the fourth-largest challenge at 37.7%. Additionally, 27.9% of respondents pointed to "employment issues" and "customs-related problems." Business and revenue loss, which stood at 14% in 2023, surged to 41% in 2024.

26.2% Plan Investments in the Next 3 Months

The survey also examined investment plans within the industry. According to the results, 26.2% of respondents plan to make new investments in the next three months, consistent with the previous period. While 30.8% of manufacturers planned investments in the previous survey, this rate dropped to 22.2% in the latest one. Among distributors, the proportion increased from 25.6% to 29.4%. Of the participants, 57.4% expect the sector to remain stable in the next three months, 14.8% foresee improvement, and 27.9% anticipate a decline.

Capacity Utilization Rate at 78.15%!

The average capacity utilization rate of manufacturers in 2024 was 78.15%, compared to 81.62% in 2023. Members' production in the last quarter of 2024 increased by 4.44% compared to the same quarter of 2023. Export levels in the last quarter of 2024 rose by 1.3% in dollar terms compared to the same period of 2023.