Turkish car sales lose momentum with 4.7 pct rise

According to an e-mailed statement from the Turkish Auto Distributor's Association, passenger car sales increased to 28,724 units while sales of vans and other light commercial vehicles fell 5.1 percent to 17,600 units.

The increase was the smallest since September and came after the central bank, citing inflationary pressures, added a total one percent to its benchmark lending rate with two half percentage increases in May and June, bringing it to 16.25 percent, steeper than any rate in Europe.

Automobile sales are also revealing a decreasing trend worldwide due to surging oil and raw material prices as well as the credit crunch.

United States auto sales plunged in June to a 15-year low and fell to 1.19 million vehicles, an 18.3 percent drop from the same month of 2007.

Through the first six months of 2008, sales were down 10.1 percent compared with 2007 and the total vehicle sales in U.S. were 16.1 million. At the current rate of sales, 2008 totals could be well below 15 million.

June's total was dragged down by an 18 percent decline for General Motors, a 28 percent drop for Ford Motor, and a 36 percent slide for Chrysler.

Hyundai Motor, South Korea's biggest carmaker also slashed its 2008 domestic sales target by 6 percent.

Photo: AFP