Since the Central Bank of Turkey introduced sharp interest rate hikes in late January of this year, which ultimately increased the price of cars via auto loans, automobile sales have been in a downwards spiral.

According to the manufacturers’ report, automobile sales in Turkey declined to 477,277 during the January-November period from 563,456 in same period of last year, showing a 15 percent contraction in the automobile market.

The report said that exports from Turkish automakers soared by 20 percent, rising from 441,670 in the January-November 2013 period to 529,633 this year in the same timeframe.

Exports in November rose from 47,271 last year to 51,528 automobiles, a nine percent increase year-on-year, the report noted.

The contraction observed in the domestic market started on January 28 after the Central Bank sharply increased interest rates in a move to slow down growth in consumer loans in order to protect the declining value of the lira and to control Turkey's budget deficit.