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Türkiye’s passenger car and light commercial vehicle market contracted sharply in May, with total sales dropping 22.6% from a year earlier, according to sector data. Consumers pulled back on big-ticket purchases amid high borrowing costs and the Iran war, while calendar effects also contributed to the decline.
According to industry data, total passenger car and light commercial vehicle sales fell to 83,442 units in May, down from the same month last year. Passenger car sales declined 23.2% to 65,386 units, while light commercial vehicle sales slipped 20.1% to 18,056 units.
Despite the annual decline, May sales remained above longer-term historical averages. Total vehicle sales were 10.3% higher than the 10-year May average, while passenger cars and light commercial vehicles stood 9.6% and 12.8% above their respective decade-long averages.
The slowdown also weighed on cumulative figures for the first five months of 2026. Between January and May, the overall market narrowed 7.4% year-on-year to 453,138 units. Passenger car sales dropped 9.7% to 356,256 units, while light commercial vehicle sales edged up 1.9% to 96,882 units.
The shift toward electrified vehicles continued during the period, with EV sales climbing 10.5% year-on-year to 66,353 units and capturing an 18.6% share of passenger car sales, while hybrid sales rose 4.4% to 119,022 units.
Renault remained the top-selling brand in January-May with 58,717 deliveries, followed by Toyota, Ford, Peugeot and Hyundai. In May, Renault also led the market with 10,926 sales, ahead of Volkswagen and Fiat.
Meanwhile, in the electric vehicle segment, Togg sold 16,745 units in the first five months of the year, ahead of Tesla's estimated 3,395 deliveries, while BYD recorded 6,726 sales. In May alone, Togg delivered 3,505 vehicles, compared with BYD's 152 and Tesla's estimated 370 units.
Analysts attributed the slowdown to a combination of high financing costs and geopolitical uncertainty, arguing that both factors have prompted consumers to delay vehicle purchases.
Local brokerage Info Yatirim pointed to rising energy costs and the ongoing Iran conflict as additional headwinds for the sector. Diesel prices rose 12% month-on-month and 63% year-on-year, while gasoline prices increased 3% and 38%, respectively, the brokerage noted. It added that any prolonged disruption to shipping through the Strait of Hormuz could drive oil prices higher, raising both vehicle operating costs and production expenses across the sector.
"Rising oil prices could push inflation higher and interrupt the rate-cut cycle," Info Yatirim said, adding that the central bank may adopt a "wait-and-see" stance. "Automotive demand is highly sensitive to credit conditions. High interest rates increase vehicle loan costs and monthly installments, limiting household access to financing."
The Central Bank of the Republic of Türkiye (CBRT) has left its policy rate unchanged at 37% in its past two meetings, while the weighted average interest rate on personal loans stood at 61.7% in the week ended May 15.
PhilipCapital, meanwhile, called the May data weak, warning that "the slowdown in domestic automotive demand could continue in 2026 due to delayed expectations for interest rate cuts."
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