Brief Description

Recently, according to overseas media reports, Turkey has tightened restrictions on the import of electric cars from China, following in the footsteps of the European Union’s launch of an anti-subsidy investigation against Chinese electric vehicles.

According to a decree issued by the Turkish Ministry of Trade last month, companies importing electric cars must have at least 140 authorized service stations nationwide in Turkey and establish a call center for each brand.

Additional Information

pertinence

Industry observers believe that these complex requirements mainly target Chinese-made electric vehicles. Vehicles imported from countries that have signed free trade agreements with the European Union and Turkey will not be subject to these regulations. All importers are required to meet these requirements by the end of this month, which is almost an impossible task for many companies.

Turkey, being the sixth largest automotive market in Europe, has caused frustration among companies selling Chinese cars due to this sudden change. These companies are striving to seek modifications or postponements of these stricter regulations in order to mitigate the disruptive impact on their business.”

According to Erol Sahin, CEO of automotive consulting firm EBS, “These regulations are very strict and currently no brand has been able to meet them. The biggest challenge lies in the requirement for importers to establish their own service stations, which will complicate transactions between importers and authorized third-party services.”

Thanks to affordable Chinese brands, well-reputed Turkish-made cars like TOGG, and the recent entry of Tesla into the market, electric vehicles are becoming increasingly popular in Turkey. According to data from the industry association ODMD, electric car sales in Turkey have grown nearly tenfold from January to November this year compared to the same period last year, now accounting for 7.1% of all passenger car sales.

Market conditions

A Turkish government official has revealed that the “Turkey EV Import Restrictions” aim to ensure the orderly development of the rapidly growing electric vehicle industry in a controlled environment. The official has stated that there are currently no plans to modify or postpone the implementation of these regulations.

China is Turkey’s main importing country, and as of November, goods from China have led to an increase in Turkey’s trade deficit to nearly $100 billion. Among them, the import of passenger cars is a significant factor contributing to this trade imbalance. In the first 10 months of this year, China exported electric vehicles worth $184 million to Turkey, almost double the total for the entire year of 2021. Earlier this year, Turkey imposed an additional 40% tariff on Chinese electric cars, raising the overall tariff rate to 50%.

Ismail Ergun, the General Manager of BYD Turkey, has stated that BYD plans to establish an authorized service network across Turkey and sign contracts with dealerships in order to offer services to customers. Ergun mentioned that ‘if regulations are implemented as intended, imported vehicles might be subject to waiting periods of several months at the border.