Turkey has recently taken significant measures to curb the influx of electric vehicles (EVs) from China by imposing a substantial 40% additional tariff on these imports. This decision, which raises the total tariff on Chinese EVs to 50%, reflects Turkey’s strategic move to protect and promote its burgeoning domestic EV industry, particularly its homegrown brand, Togg.
The new tariff regime is part of a broader set of regulatory changes aimed at tightening the entry of Chinese EVs into the Turkish market. Alongside the increased tariffs, Turkey has introduced stringent requirements for EV importers, mandating that they operate at least 140 authorized service stations evenly distributed across the country and establish a dedicated call center for each brand. This policy is expected to significantly hinder Chinese EV manufacturers, as meeting these requirements by the end of the year is deemed nearly impossible for most brands.
These measures come at a time when EVs are gaining popularity in Turkey due to their environmental benefits and advanced technology. Chinese brands have capitalized on this trend, with Chinese EV exports to Turkey reaching $184 million in the first ten months of 2023, nearly double the figure for the entire previous year. However, the new tariffs and regulations are likely to disrupt this growth trajectory, creating a more favorable environment for local manufacturers like Togg, which has begun delivering its first model, the T10X SUV, to the domestic market.
The Turkish government’s approach is seen as a move to balance the trade deficit with China and bolster its domestic automotive industry. While the tariffs are expected to make Chinese EVs significantly more expensive in Turkey, this could provide a competitive edge to local manufacturers and reduce dependency on imports. Critics, however, argue that these protectionist measures may stifle competition and innovation in the Turkish market.
Overall, Turkey’s decision to impose additional tariffs on Chinese EV imports underscores the country’s efforts to foster a self-sufficient automotive industry while navigating the complexities of international trade relations.