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Turkish car rental association investments total over $1 bn in Jan-Sep

29 November 2021 15:47 (UTC+04:00)
Turkish car rental association investments total over $1 bn in Jan-Sep

By Vugar Khalilov

Turkey’s Otomo car rental organizations association (TOKKDER) has made over $1 billion (12.6 billion TL) investments in the third quarter of 2021, Yeni Shafak has reported.

During the reported period, the association added 47,700 new vehicles to its fleet bringing the volume of the sector to $3.8 billion (47.7 billion TL), the report added.

TOKKDER said that the tax amount paid by the industry in the first nine months of 2021 had reached overall $525 million (6.6 billion TL). Analysis of the rental periods in the sector showed that 46.5 percent of the operational leases in Turkey consisted of 30-42-month contracts in the third quarter of 2021.

Furthermore, the most preferred operational leasing period was contracts of 20 to 43 months and above, while contracts of 18-30 months were preferred by 18.4 percent. Lease agreements under 18 months covered 15.1 percent of the contracts.

"The problem of vehicle availability also affected the contract durations, companies do not want to leave their vehicles, so they prefer to extend their existing contracts," TOKKDER chief Inan Ekici said, commenting on the contract periods.

During the reported period, the number of active rental vehicles in the sector decreased by less than 1 percent compared to the end of the first half of the year and amounted to 221,748 units. The total number of vehicles in the sector decreased by 9.1 percent (239,000 units) compared to late 2020.

According to the report, Renault continued to be the most preferred brand in the operational car rental sector in Turkey with a share of 22.9 percent. Fiat followed Renault with 14.7 percent, Volkswagen with 10.9 percent and Ford with 10.8 percent.

Furthermore, 50.7 percent of the sector's vehicle park consisted of compact class vehicles, while small class vehicles had a share of 26.5 percent and upper-middle-class vehicles’ share equaled 18 percent.

The share of light commercial vehicles, which was 2.9 percent in the fleet of the operational car rental sector at the end of 2018, increased to 4.8 percent by the end of the third quarter of 2021.

On the other hand, the rapid increase in the share of hybrid and electric vehicles in the sector's vehicle was noteworthy.

“Commercial vehicle rental rates are increasing. We anticipate that this trend will continue in the coming period," Ekici stressed.

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