TARMAKBIR publishes a monthly report on the development of the tractor industry in Turkey, covering production, registrations and exports of tractors in units. The latest report, published in September 2023, shows that tractor production, registrations in the national market and export figures continue to increase. Last August showed a strong increase, but September was weak for the tractor industry, with a 5 percent decline in domestic volume compared to the previous year. Likewise, production and exports also recorded a slight year-on-year decline in September 2023. Domestic sales of tractors fell from 6,265 units in September 2022 to 5,943 units in September this year, according to the Turkish Statistical Institute.
The decline in sales adds to other recent evidence that the economy is cooling as consumers grapple with higher interest rates and the impact of a year-long bout of elevated inflation. Türkiye’s Monetary Policy Committee has raised its policy rate for the fourth consecutive month in August, to 25% from 17,5% therefore some Turkish banks are cutting back on a cheap source of cash for tractor customers and they are reluctant to give long-term lending for most of their applicants. Even the state-run bank “Ziraat Bankası” which provides interest subsidy for farmers, also limits the lending maturity to three years. Most economists say that policy remains too loose given year-end inflation forecasts remain at more than 40%.