Türkiye’s Import Restrictions on Hybrid Cars
Türkiye has announced new import restrictions on plug-in passenger and commercial hybrid vehicles from certain countries, aiming to boost local production. The decision, published in the Official Gazette, will primarily affect imports from China and Japan, signaling a push for foreign automakers to establish domestic plants in Türkiye.
The new rules, set to take effect in 30 days, come on the heels of a previous limitation on electric vehicle imports. This move is seen as a strategic message to foreign automakers engaged in negotiations with Türkiye to expedite their plans for local manufacturing.
China, a major exporter of vehicles, has been under scrutiny for allegedly subsidizing its exports, prompting various countries to raise concerns. Türkiye’s latest measures are viewed as a tactic to pressure Chinese automakers, particularly those in talks about investing in Türkiye’s production facilities.
According to the notice, importers must meet specific conditions, including having 20 authorized service centers across seven regions in Türkiye, to import chargeable hybrid vehicles not manufactured in the European Union or countries with free trade agreements with Türkiye. It’s worth noting that no importers currently meet these stringent requirements.
Erol Şahin, founder of EBS Danışmanlık consultancy, highlighted the impact of the new regulations, stating, “All plug-in hybrid vehicles will be blocked, except for those already in stock. Other hybrid cars are subject to high customs taxes.” Şahin emphasized the government’s firm stance to prompt Chinese firms to hasten their investment decisions regarding domestic production.
The stricter import conditions could pose challenges for Chinese brands introducing or planning to introduce plug-in hybrid vehicles in Türkiye. This development follows previous restrictions in June, when Türkiye imposed additional tariffs on internal combustion engines and hybrid vehicles imported from China, citing consumer safety and investment promotion as key reasons.
In a statement, the Trade Ministry affirmed Türkiye’s commitment to implementing import policies that ensure product safety, market supply, and consumer protection. These measures align with the government’s strategy to regulate imports effectively and monitor product lifecycles.
Chinese Investment in Türkiye’s Automotive Industry
In July, China’s leading electric vehicle (EV) producer, BYD, inked a deal with the Turkish government to establish a $1 billion plant in Türkiye, boasting an annual capacity of 150,000 vehicles. The facility, set to commence operations in Manisa province by the end of 2026, is projected to create up to 5,000 direct job opportunities.
Despite China’s caution to its companies regarding overseas investments, BYD’s progress in Türkiye remains steady. The company’s investment is a significant milestone in Türkiye’s automotive sector, indicating a promising partnership between the two nations.
Other Chinese automakers like Chery and state-owned SAIC Motor are also in discussions with Türkiye for potential investments. These partnerships reflect Türkiye’s attractiveness as a manufacturing hub for international automotive companies, leveraging its strategic location and skilled workforce.
Market Trends and Outlook for Türkiye’s Automotive Sector
In Europe, sales of fully electric vehicles have been declining compared to hybrid cars, showcasing a shift in consumer preferences. Türkiye’s domestic automotive market has remained stable, with 762,000 units sold in the first eight months of the year, similar to the previous year’s figures.
Chinese brands have significantly increased their market share in Türkiye, with imports rising by over 100% to 63,000 units, capturing an 8% share of the market. This surge underscores the growing presence of Chinese automakers in Türkiye’s automotive landscape and their potential to drive innovation and competition.
As Türkiye continues to implement import regulations to safeguard consumer interests and promote local production, the automotive industry is poised for further growth and collaboration with international players. The country’s strategic initiatives to attract foreign investments and enhance domestic manufacturing capabilities reflect its commitment to fostering a competitive and sustainable automotive sector.