The share of electric vehicles in Türkiye's auto market is predicted to further increase in the upcoming year to account for nearly a third of it, according to a chief executive of a major auto distributor company in the country on Wednesday.
Electric vehicles are estimated to make up 30% of Türkiye’s auto market in 2025, as increasingly more EV models of well-known car brands enter the country and the domestic EV brand Togg boosts its production capacity, Ali Bilaloğlu, CEO of the Turkish auto exporter and distributor Doğuş Otomotiv told Anadolu Agency (AA).
Bilaloğlu stated EV and hybrid sales accounted for 27% of the total Turkish auto market this year, led by the entry of Chinese brands into the market and the surge in the number of models over the same period.
"This year, we launched at least one EV model for almost every brand we distribute, representing all Volkswagen Group brands and two or three more EV models for most of our brands," he said, noting that the expectations that number of EV models the firm distributes from the group would be 20-25 in the coming years.
Bilaloğlu estimated that the end-year auto sales, excluding heavy commercial vehicles, will reach 1.2 million units this year, as January-November sales totaled nearly 1.1 million units, close to the record sales of 2023.
Türkiye's automotive sector has endured a challenging but transformative year as shares of electric vehicles and hybrids were on the rise, and the demand was widely undaunted despite a monetary tightening drive since mid-2023.
In July, Chinese EV giant BYD agreed on a $1 billion investment deal with Turkish authorities to set up a production facility in the western province of Manisa, which is also seen as one of the key elements that could contribute to the further boom of EVs in the country.
At the same time, negotiations are nearing completion with another Chinese automaker, Chery, for a manufacturing facility within the country, a senior official said earlier this month.
Bilaloğlu, on the other hand, stated that the Turkish auto sector develops every year, and the country’s demographic structure influences the market.
He said that the duration extension of EU General Safety Regulation (GSR) II, the increase in the number limit of vehicles sold without the special consumption tax (ÖTV) and the speculations that the ÖTV would increase led to the high sales this year.
"Like other developed and industrialized countries with large economies like that of Türkiye’s, we observe that tax policies to ensure predictability of the market are more stable and do not change during the year," he noted.
Bilaloğlu stated that the turbulent and complicated period the world is in impacts energy prices and energy-dependent sectors such as the automotive industry, which may lead to price hikes in the auto market in upcoming years. At the same time, high interest rates may deter investors.
Yet, he said what is important here is "how stable we will remain and how sustainable growth we can achieve."
"In that sense, we see that a very successful policy is being implemented. In economic and political terms, there are positive developments such as the decline in inflation and the decrease in the current account deficit," he noted.
Reminding that the work of Chinese brands to establish production facilities would be concluded soon, Bilaloğlu said: "I think Togg will also increase its production capacity. In this case, I predict that the electric vehicle market share will increase to 30%, provided that the current ÖTV conditions do not change."
"As Doğuş Otomotiv, we also established a company in 2024, D-Charge. We currently have approximately 335 sockets in 27 provinces. Next year, this will increase to 48 provinces, and we will have 670 sockets," he concluded.
