Bank loan

Auto loan limits will increase: Watchdog

ISTANBUL

Mehmet Ali Akben, the head of Turkey’s banking watchdog, said loan limits for locally produced automobiles will be extended in the coming months.

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The chairman of the Banking Regulation and Supervision Agency said in a television interview late on February 3: “There is a range that we want to offer incentives. We want to bring efficiency to locally produced vehicles rather than imported vehicles.

Last month, the number of Special Consumption Tax (SCT) brackets for automobiles with an engine capacity of less than 1,600 cubic centimeters (cc) was increased from three to five, lowering the tax base limits for some locally produced car models.

For conventional cars, the upper limit of the tax base where a 45% SCT is applied has been raised from 92,000 Turkish Lira ($6,765) to 120,000 Turkish Lira ($8,820).

For cars priced above 200,000 lira, an 80% SCT is applied.

Akben also said that before Turkey’s Automobile Joint Venture Group (TOGG) starts mass production, a new car loan program may be introduced by lenders.

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The electric cars produced by TOGG are expected to hit the road in 2022, two years before being exported to European markets.

Sales of cars and light commercial vehicles fell 4.6% to 737,350 in 2021, according to the Association of Automotive Distributors (ODD).