US and Turkey auto markets face steep demand drops and rising prices

A Wall Street Journal analysis finds that the United States automotive market has entered a lasting period of reduced demand. About one million prospective new‑car buyers have stopped looking, keeping annual new‑vehicle sales around 16 million—down from roughly 17 million before the pandemic. Higher average prices near $50,000, elevated financing rates, and rising insurance and maintenance costs are pressuring household budgets, while the average age of a vehicle on U.S. roads has climbed to a record 13 years.

In Turkey, sales of passenger cars fell 23 % and light commercial vehicles 20 % in the first five months of 2026, with the overall market shrinking by more than 22 % in May. Tight credit conditions, waning purchasing power and supply‑chain disruptions have driven manufacturers to keep list prices steady or cut margins, prompting a wave of discounting and a focus on the cheapest new‑car models. The slowdown has rippled into the used‑car sector, and dealers report empty showrooms as consumers delay purchases.

Both markets are seeing a shift toward higher‑margin SUVs and trucks, while entry‑level models lose ground, indicating a broader re‑balancing of the global automotive industry toward costlier segments amid tighter consumer finances.