Wednesday, March 22, 2023

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Reduction Of Russia’s Gas  Will Affect Automotive Production

While the global chip supply problems that erupted in the automotive industry last year are still unresolved, a new problem awaits the European automotive manufacturers. If Russia cuts off the natural gas flow, it could have a huge impact on automotive production in European countries.

Hayrettin Ertemel, President of the Istanbul Motor Vehicle Dealers Association (IMAS), said in a statement to Milliyet on the subject, “Energy costs have increased significantly all over the world and in Europe due to the crisis. This will significantly increase the prices of all parts in the automotive supplier industry.

“New vehicle prices will increase even more”

This, of course, will have an impact on new vehicle prices as an increase. Here, an increase of up to 15-20 percent is expected in new vehicles for some brands and models by the end of the year.

Stating that this situation can also be reflected in the second-hand car market, Ertemel said, “Although the second-hand market is stagnant at the moment, second-hand prices will increase again with the increase in new vehicle prices.

The second-hand automotive market acts by being directly affected by the new vehicle prices, and if the new vehicle prices go up, the second-hand prices will rise again,” he said.

It was stated that the automotive industry suffered a serious injury when Russia used its last trump card to cut off the natural gas flow in the tension with the European Union after the war between Russia and Ukraine, while the increase in vehicle prices would be felt more towards the end of the year.

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