According to media reports, Turkey has recently intensified restrictions on the import of Chinese-made electric cars, becoming another country to take action following the European Union's initiation of an anti-subsidy investigation into Chinese electric cars.
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.
Industry observers believe that these complex requirements are primarily targeting Chinese-made electric vehicles. Vehicles imported from the European Union and countries that have signed free trade agreements with Turkey will not be subject to these restrictions. All importers are required to meet these requirements by the end of this month, which is an almost impossible task for many companies.
Turkey is the sixth-largest automotive market in Europe, and this sudden shift poses challenges for companies selling Chinese cars in Turkey. These companies are actively seeking modifications or delays in the implementation of these stricter regulations to mitigate the disruptive impact on their business.
"These regulations are very stringent, and as of today, no brand has been able to meet the requirements," said Erol Sahin, CEO of the automotive consulting firm EBS. "The biggest problem is the requirement for importers to establish service stations themselves, which complicates transactions between importers and authorized third-party services."
Thanks to affordable Chinese brands, well-received Turkish domestic car Togg, and the recent entry of Tesla into the market, electric cars are becoming increasingly popular in Turkey. According to data from the industry association ODMD, electric car sales in Turkey from January to November this year increased nearly tenfold compared to the same period last year, now accounting for 7.1% of all passenger car sales.
A Turkish government official revealed that the new regulations aim to ensure the orderly development of the rapidly growing electric car industry in a controlled environment. The official stated that there are currently no plans to modify or delay the implementation of the regulations.
China is a major importer for Turkey, and as of November, Chinese goods have increased Turkey's trade deficit to nearly $100 billion. Vehicle imports, especially passenger cars, have been a significant factor in the country's growing trade deficit. In the first ten months of this year, China exported electric cars worth $184 million to Turkey, almost double the total for the entire year of 2022. Earlier this year, Turkey imposed an additional 40% tariff on Chinese electric cars, raising the total tariff rate to 50%.
Ismail Ergun, General Manager of BYD Turkey, stated that BYD plans to establish an authorized service network nationwide in Turkey and sign contracts with dealers to provide services to customers. Ergun stated, "If the regulations are implemented as planned, imported cars may have to wait for months at the border."
