Turkish officials announced on Friday that they would scrap plans announced nearly a month ago to impose a 40 percent tariff on all vehicles from China, in a move aimed at increasing incentives for Chinese car companies to invest in Turkey.
According to Bloomberg, citing senior Turkish officials, BYD will announce a $1 billion investment in Turkey at a ceremony on Monday.The official said talks with BYD had been finalised and the company would build a second plant in Turkey, following the announcement of its first electric vehicle plant in Hungary.
Previously, Turkey announced a presidential decision on the 8th that Turkey will impose an additional tariff of 40% on cars imported from China, with an additional tariff of at least $7,000 per vehicle, which will be implemented on July 7.The Turkish Commerce Ministry said in the statement that the purpose of imposing the tariffs was to increase the market share of domestically produced vehicles and reduce the current account deficit: “The import regime decision and its annex, to which we are parties, are international agreements aimed at ensuring consumer safety, protecting public health, protecting the market share of domestic production, encouraging domestic investment and reducing the current account deficit.”
It is worth noting that this is not the first time that Turkey has imposed tariffs on Chinese cars. In March 2023, Turkey imposed an additional 40 percent surcharge on tariffs on electric vehicles imported from China, raising the tariff to 50 percent. In addition, according to a decree issued by the Turkish Trade Ministry, all companies importing electric vehicles must establish at least 140 authorized service stations in Turkey, and set up a dedicated call center for each brand. According to relevant statistics, nearly 80% of the cars imported by Turkey from China belong to internal combustion engine vehicles. The new tariffs will be extended to all automotive sectors.
It is worth noting that the sales of Chinese cars in Turkey are not high, but reflect a rapid growth trend. Especially in the electric vehicle market, Chinese brands occupy nearly half of the market share, and this has had an impact on local companies in Turkey.
Post time: Jul-10-2024