Anadolu Efes, Ford Oto, Tofas Fall on Tax Rises: Istanbul Mover

Anadolu Efes Biracilik & Malt Sanayii AS (AEFES), Turkey’s biggest brewer, carmakers Tofas Turk Otomobil Fabrikasi AS (TOASO), Ford Otomotiv Sanayi AS (FROTO) and distributor Dogus Otomotiv Servis & Ticaret AS (DOAS) fell after the government increased taxes on alcoholic beverages and cars.

Anadolu Efes dropped 3 percent to 25.8 liras at 4:40 p.m. in Istanbul, the biggest loss since Sept. 3. Tofas, Fiat SpA (F)’s joint-venture with Koc Holding AS (KCHOL), slumped 4.9 percent to 8.92 liras, sliding the most since May 24.

Turkey’s Finance Ministry raised special consumption taxes on beer by 0.09 liras a liter and on cars with engines smaller than 1,600 cubic centimeters to 40 percent from 37 percent, according to a decision published in the Official Gazette in Ankara on Sept. 22. Taxes on gasoline, diesel, liquid petroleum gas used in cars, lubricants, solvents and charges on real estate transactions were also increased.

“We calculate that Efes should increase beer shelf price by around 8 percent to cover this tax hike,” Oyak Securities said in an e-mailed report in Istanbul today. “Higher prices take toll on consumption, which have reflected as flat beer volumes in Turkey in the last four years.”

Anadolu Efes raised beer prices by about 14 percent in late 2011 and 3 percent in April due to previous tax increases, Oyak said.

Ford Otosan, Ford Motor Co. (F)’s partnership with Koc, slid 2.9 percent to 18.2 liras, its steepest decline since May 31. Dogus Oto, the distributor of Volkswagen AG (VOW) cars in Turkey, retreated 2.7 percent to 6.4 liras, slipping the most since July 24.

“About 90 percent of passenger cars sold in the domestic market have engine sizes lower than 1.6 liters,” Erkan Savran, head of research at Istanbul-based Ak Invest, said in an e- mailed report today. “Industry officials anticipate the tax rise might result in a volume loss” of 40,000 to 50,0000 cars per annum in the domestic market, Savran said.

Car companies won’t let the higher tax reflect in their price tags this year, “to not adversely affect the seasonally high demand between September-December,” Savran said.

To contact the reporter on this story: Aydan Eksin in Istanbul at

To contact the editor responsible for this story: Shaji Mathew at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.