Turkey Shifts Gears: Cracking Down on Hybrid Imports to Woo Chinese Investors
Turkey Imposes Strict Conditions on Plug-in Hybrid Vehicle Imports from China
Reuters
Turkey’s Ministry of Commerce has introduced strict conditions on the import of plug-in hybrid vehicles from countries including China, according to a notice published in the Official Gazette on 20 September.
This move follows a decision in June to limit electric vehicle imports and is seen as an attempt to increase pressure on Chinese automakers to invest in production in Turkey.
China has faced widespread criticism over its vehicle exports, which many countries claim are heavily subsidized by Beijing. Analysts believe that Ankara is trying to protect its domestic market and encourage foreign investment.
The notice, which comes into force in 30 days, outlines several conditions that importers must meet, including having 20 authorized service shops in seven different regions in Turkey. This requirement applies to chargeable hybrid vehicles that have not been produced in the European Union or in countries with which Turkey has a free trade agreement.
According to analysts, no importers currently meet these conditions, effectively blocking the import of all plug-in hybrid vehicles that are not already in stock. Other hybrid cars are already subject to high customs tax.
Erol Sahin, founder of consultancy EBS Danismanlik, stated that the government is “tightening its message of urgency” to Chinese companies it is negotiating with over domestic production. He added that the new regulations will have a significant impact on the market.
In July, BYD China agreed to build a $1 billion factory in Turkey with an annual capacity of 150,000 vehicles. Chery and China’s SAIC are also in talks with the Turkish government about potential investments.
Meanwhile, data has shown that sales of fully electric vehicles have been falling faster than hybrid cars in Europe. Turkey’s domestic car and light vehicle market has remained steady, with 762,000 units sold in the first eight months of the year. However, imports of Chinese brands have more than doubled to 63,000 units, taking an 8% market share.