TURKIYE has adjusted its tariffs on imported electric vehicles (EVs) from China to attract investment from Chinese companies, yicai.com reported.

Türkiye hopes to attract Chinese firms to invest in the country, help develop its EV market and boost exports to neighboring regions, said Zou Zhiqiang, researcher at the Center for Middle Eastern Studies of Fudan University, as quoted by the website.

In March last year, Türkiye introduced a 40% additional tax on all imported EVs from China to protect its domestic production capability and reduce its deficit. On June 8, it extended the policy to all types of vehicles and auto parts from China.

However, the Turkish government announced July 5 that Chinese automakers investing in and building production facilities in the country would be exempt from the 40% additional tariff.

The announcement came three days ahead of the signing of an agreement that will see Shenzhen-based BYD build a manufacturing and R&D base in the country. Türkiye’s standard import tariff is 10%.

The competitiveness of Turkish EVs is relatively weak, as shown by their high prices and low penetration rate, Zou noted. Türkiye hopes to attract foreign investment to rapidly expand the production of domestic EVs, Zou added.

“Türkiye is willing to cooperate with Chinese companies, especially startups,” said Huseyin Emre Engin, Türkiye’s consul general in Shanghai. “We have always maintained close cooperation with Chinese firms in the fields of EVs and batteries.”

Türkiye’s geographical connectivity allows companies producing in the country to export products to surrounding regions, such as the Middle East and Russia, Engin noted, adding that production and export costs in Türkiye are fairly low.

On July 4, the European Commission began to levy provisional import tariffs on China-made EVs ranging from 17.4% to 37.6%. Türkiye has a customs agreement with the European Union, so cars exported from Türkiye to the EU are not subject to additional tariffs, Engin explained.

On July 8, BYD signed a deal with the Turkish Ministry of Industry and Technology for the Chinese EV giant to invest US$1 billion to build a facility in Türkiye’s Manisa province. It will have the capacity to manufacture 150,000 vehicles a year and is slated to begin production at the end of 2026. The site will employ roughly 5,000 people.

BYD is not alone in seeking out Türkiye for expansion. Speedy Working Motors, a subsidiary of China’s Brilliance Auto Group, submitted a proposal to the Turkish government earlier in July to build a plant in the country with an annual production capacity of 50,000 vehicles.

Some 1.23 million cars were sold in Türkiye last year, up over 57% from the year before, with Chinese brands achieving a 4.5% market share, according to statistics from the Turkish association of automobile manufacturers. Among them, 66,000 units were EVs, accounting for only 6.8% of the total.

In the first five months of the year, some 471,700 vehicles were sold in Türkiye, up 6% from a year earlier. Chinese carmaker Chery Automobile sold 27,000 units in the country, up 387% in the period and ranking fifth after Fiat, Renault, Ford Motor, and Volkswagen Group. SAIC Motor’s MG marque and BYD are the two other Chinese firms selling cars in Türkiye.

(SD News)