On Friday, Turkish authorities announced the cancellation of the plan to impose a 40% additional tariff on all vehicles imported from China. This decision aims to encourage Chinese car manufacturers to invest in Turkey.
Tariffs on Chinese Vehicles Cancelled
According to Bloomberg, citing senior Turkish officials, BYD will announce a $1 billion investment in Turkey (approximately 7.283 billion RMB) during a ceremony on Monday.
The official stated that negotiations with BYD have been finalized, and the company will build its second European factory in Turkey, following the announcement of its first electric vehicle factory in Hungary.
Reports suggest that Turkish President Recep Tayyip Erdoğan is expected to announce the agreement at a ceremony in Manisa Province on Monday.
The new factory could make it easier for BYD to enter the European Union. Turkish Industry and Technology Minister Mehmet Fatih Kacır told Bloomberg in May that BYD and Chery were in deep negotiations about investing in Turkey.
Previously Announced 40% Tariff
In March 2023, Turkey imposed an additional 40% tariff on electric cars imported from China, raising the tariff to 50% with a minimum additional tariff of $7,000 per vehicle.
The Turkish Ministry of Commerce stated in the declaration that the purpose of imposing the tariff was to increase the market share of domestically produced vehicles and reduce the current account deficit:
“The import system decision and its annexes, as well as the international agreements we have signed, aim to ensure consumer safety, protect public health, protect the market share of domestic production, encourage domestic investment, and reduce the current account deficit.”
Furthermore, according to a decree previously issued by the Turkish Ministry of Trade, all companies importing electric vehicles must establish at least 140 authorized service stations in Turkey and set up dedicated call centers for each brand.
According to relevant statistics, nearly 80% of the cars imported from China to Turkey are internal combustion engine vehicles. This tariff policy has been extended to cover all vehicle categories.
Despite this, sales of Chinese cars in Turkey remain relatively low but show a trend of rapid growth. Especially in the electric vehicle market, Chinese brands occupy nearly half of the market share, which has impacted local Turkish enterprises.
Challenges for Chinese Electric Vehicles Overseas
The Chinese electric vehicle market is highly competitive, with many brands actively expanding into overseas markets. According to Bloomberg, there are 129 electric vehicle brands in China, but only 20 brands hold a market share of 1% or more.
In the fiercely competitive overseas electric vehicle market, having strong logistics support is crucial. Airsupply offers unconditional support to help you secure a share of this market.
