Automotive Aftersales Products and Services Association (OSS) evaluated the first quarter of 2024 specifically for the automotive aftersales market with a survey conducted with the participation of its members. According to the OSS Association's 2024 First Quarter Sectoral Evaluation Survey; The automotive after-sales market continued its upward trend throughout 2023 in the first quarter of 2024. According to the survey; In the first quarter of 2024, domestic sales increased by an average of 2023 percent in dollar terms compared to the first quarter of 1,27. During this period, while the sales of distributor members increased by 2,44 percent, the sales of producer members decreased by 0,5 percent.
The survey also included expectations for the second quarter of 2024. Accordingly, it was observed that an increase of 2024 percent in dollar terms was expected in domestic sales in the sector in the second quarter of 4,13. Commenting on the subject, Ali Özçete, Chairman of the Board of OSS Association, said: “The 4,13 percent sales increase expectation stated in the report is a strong sign that the growth in our sector will continue. "This increasing trend shows that demand and consumer confidence in our sector are increasing," he said. 13,3 percent of OSS Association members stated that the collection process has gotten better, while 25,3 percent stated that it has gotten worse. The average score of the collection process survey, which was evaluated out of 100 and was 2023 in the last quarter of 52,7, decreased to 2024 in the first quarter of 47,7.
STAFF EMPLOYMENT IS INCREASING
34,7 percent of the members participating in the survey increased their employment compared to the last quarter of 2023. 44 percent of the members maintained their employment during the said period. The rate of members stating that their employment decreased compared to the last quarter of 2023 remained at 21,3 percent. Employment of producer and distributor members remained close to each other. Making evaluations about the increasing personnel employment, Ali Özçete said, “The increase in employment stated in the report shows that the workforce in our sector is getting stronger. However, problems in finding blue-collar personnel are among the top agenda items of the sector. "Positive developments in employment will make a positive contribution not only to the growth of our sector, but also to the general health of our economy," he said.
THE BIGGEST PROBLEM IS THE EXCESSIVE INCREASE IN COSTS
Problems in the sector constituted one of the most striking sections of the survey. While the top problems observed by members in the first quarter of 2024 were "Excessive increase in costs" with 80 percent, "Problems in cash flow" ranked second with 54,7 percent. 33,3 percent of the members described "Exchange rate and exchange rate increase" and "Cargo cost and delivery problems" as the third biggest problems for the sector. 30,7 percent of the survey participants pointed to job and turnover loss, and 29,3 percent pointed to problems in employment. In addition, 26,7 percent of the participants listed the problems experienced at customs and 24 percent listed the legislative changes as important problems. Making evaluations about the problems of the sector, Ali Özçete said, “The excessive increase in costs and the problems in cash flow have started to negatively affect the companies in the sector. "If the problems continue for a certain period of time, it is likely that the number of companies experiencing financial difficulties will increase," he said.
69,3 PERCENT OF MEMBERS HAVE NO INVESTMENT PLANS ON THEIR AGENDA
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 dropped to the lowest level of the last period with 30,7 percent. While 56,8 percent of producer members were planning investments in the previous survey, this rate decreased to 26,7 percent in the new survey. For distributor members, this rate decreased from 42,9 percent to 36,7 percent. It was observed that 25,3 percent of the members participating in the survey predicted that the sector would improve in the next three months. The rate of those who say it will get worse was determined as 24 percent. The average capacity utilization rate of manufacturers in the first quarter of 2024 was 77,33 percent. This rate was 2023 percent in 81,62 overall. In the first quarter of 2024, members' production increased by 2023 percent compared to the same quarter of 8,17. In the first quarter of 2024, members' exports increased by 2023 percent in dollar terms compared to the first quarter of 3,67.
OSS Association President Ali Özçete said, “Although the negative picture in the survey results is a result of the anti-inflation policy, we adopt this policy and find it appropriate within the scope of the Medium Term Program (MTP). Although the automotive aftermarket sector appears to be a consumer product, it is in a product group in the safety class. The sector is moving away from investments as a result of increasing operating expenses and difficulty accessing cash. This situation, along with the deterioration in stock levels, may cause difficulties for the end consumer in accessing the product and security vulnerabilities in the coming months. In this context, the biggest expectation of sector stakeholders is to provide sectoral exemptions or tax advantages in cash transportation costs.”
