Second Quarter Sectoral Assessment Survey Results Published
2024 Second Quarter Sectoral Assessment Survey Results Published
After a cautious start to 2024, the automotive aftermarket continued its stagnant course in the second quarter. In the second quarter of 2024, the sector, whose sales and exports fell, maintained its employment. The sector expects a 2.5 percent increase in domestic sales in dollar terms in the third quarter of the year. According to the Automotive After Sales Products and Services Association's (OSS) Sectoral Evaluation Survey for the 2nd Quarter of 2024; in the second quarter of the year, there was an average decline of 2.67 percent in domestic sales in dollar terms compared to the same period of 2023. While 13 percent of producer members planned investments in the next three months, "excessive increase in costs" was one of the main problems observed in the second quarter of 2024. According to the survey, "problems in cash flow" stood out among the priority problems. Ali Özçete, President of the OSS Association, said: "According to the results of the survey we regularly conduct every quarter within our association, we see that the contraction in consumer demand has exceeded expectations. Although this situation was expected compared to the same quarter of last year, the fact that it exceeded expectations has made the stakeholders of the sector uneasy. We see more clearly in the second quarter survey results that the contraction in cash flow is reflected in collection problems. The decline in capacity utilization rates is above expectations and raises concerns about the future. However, despite cost increases and cash flow problems, we can say that we have achieved a significant success by maintaining our employment."
The Automotive Aftermarket Products and Services Association (OSS) evaluated the second quarter of 2024 in the automotive aftermarket through a survey organized with the participation of its members. According to the OSS Association's First Quarter 2024 Sectoral Evaluation Survey, the automotive aftermarket followed a stagnant course in the second quarter of 2024. According to the survey; in the second quarter of 2024, domestic sales decreased by an average of 2.67 percent in dollar terms compared to the second quarter of 2023. In this period, sales of distributor members increased by 3.11 percent in dollar terms, while producer members experienced a decrease of 11.96 percent in dollar terms.
Sales are expected to increase by 2.5 percent in dollar terms in the third quarter!
The survey also included expectations for the third quarter of 2024. Accordingly, it was observed that an average increase of 2.5 percent in domestic sales in dollar terms is expected in the sector in the third quarter of 2024. Stating that the collection processes, which were 47.7 percent in the first quarter of 2024, were realized at 40.9 percent in the second quarter of 2024, 8.3 percent of the OSS Association members stated that the collection process has gotten better, while 45 percent stated that it has gotten worse.
Producer employment maintained its strength!
31.7 percent of the surveyed members increased their employment compared to the first quarter of 2024. 48.3 percent of members maintained their employment in the said period. The rate of members who stated that their employment decreased compared to the first quarter of 2024 remained at 20 percent. Employment of producer and distributor members remained close to each other.
The increase in costs is by far the biggest problem!
One of the most striking parts of the survey was the problems in the sector. The top problems observed by members in the second quarter of 2024 were "Excessive increase in costs" with 78.3 percent, while "Problems in cash flow" ranked second with 61.7 percent. 48.3 percent of the members described "Loss of work and turnover", and 40 percent described "cargo cost and delivery problems" and "problems in employment" as the fourth biggest problem for the sector. 23.3 percent of the survey participants pointed to legislative changes, and 21.7 percent pointed to problems experienced at customs. Additionally, 20 percent of the participants listed supply problems among the important problems.
Those planning to invest in the next 3 months remained at 20 percent!
Along with the survey, the investment plans of the sector were also examined. According to the survey, the rate of members considering making new investments in the next three months remained at the lowest level of the last period at 20 percent. While 26.7 percent of producer members were planning investments in the previous survey, this rate dropped to 13 percent in the new survey. For distributor members, this rate decreased from 36.7 percent to 24.3 percent. 43.3 percent of the members participating in the survey stated that the sector will remain the same in the next three months, 25 percent said it will get better, and 31.7 percent said it will get worse.
Capacity utilization rate in production is 75.22 percent!
The average capacity utilization rate of manufacturers in the second quarter of 2024 was 75.22 percent. This rate was 77.33 percent in the first quarter of 2024. In the second quarter of 2024, members' production decreased by 2.17 percent compared to the same quarter of 2023. In the second quarter of 2024, members' exports decreased by 1.3 percent in dollar terms compared to the second quarter of 2023.
In his evaluation on the subject, OSS Association President Ali Özçete said, “According to the survey results we regularly conduct every quarter within our association, we see that the contraction in consumer demands is above expectations. Although this situation was expected compared to the same quarter of the previous year, the fact that it was above expectations made the sector stakeholders uneasy. We see more clearly, especially in the second quarter survey results, that the contraction in cash flow is reflected in collection problems. The decrease in capacity utilization rates is above expectations and increases concerns about the future. However, despite cost increases and cash flow problems, we can say that we have achieved significant success by preserving our employment. Although the outlook is pessimistic in the short and medium term, the positive rate in new vehicle sales keeps long-term expectations strong. "In addition, we see that the fight against inflation has begun to find a response with the stabilization in exchange rates within the framework of the policies carried out within the scope of the fight against inflation, as well as the stabilization in spare parts prices."