Automotive Sector: No Longer Attractive for Investors

Changing Dynamics in the Automotive Sector

Fırat Fidan, a member of the Board of Directors of FDN Group and CEO of Europcar & Goldcar Turkey, evaluated the developments in the automotive sector on Bloomberg HT's Upper Level program presented by Arzu Maliki.

Financing Costs and Profitability Issues

Fidan expressed that the post-financing balance sheets were below expectations, stating, "Financing costs were very high, which negatively affected the profitability rates of companies."

Stating that high financial costs were among the main reasons for the losses recorded in the balance sheets of companies in Turkey, Fidan used the expression, "While experiencing growth in the short-term car rental in the foreign market, the contraction in the domestic market diminished profitability."

Changing Preferences of Investors

Fidan pointed out that automotive sales have moved away from being an investment vehicle, especially in the second-hand market, stating, "Now, car purchases are being made based on needs." He even mentioned that Turkish tourists' car rental habits have changed.

Investment Targets for 2024

Fidan noted that the revenues for the year 2023 closed around 450 million euros and that they set a future investment target of 90 million euros. He emphasized that 45 million euros of this would be used in Turkey, while the other 45 million euros would be utilized abroad.

Trends in Electric Vehicles

Fidan stated that in Norway, 8 out of 10 vehicles are electric, while electric vehicle sales in Turkey remain at only 12%. He mentioned that due to the insufficiency of charging stations provided, local tourists have not sufficiently adopted the rental of electric vehicles.

Angel Investment Activities

Fidan highlighted that he is a member of the angel investment network in Turkey and has invested in many initiatives in Europe. He said, "I invest in the person; evaluating who the entrepreneur is is very important to me."