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Türkiye tightens hybrid car imports as it seeks Chinese investment

by Daily Sabah with Agencies

ISTANBUL Sep 20, 2024 - 1:21 pm GMT+3
EV cars are pictured inside BYD's first electric vehicle factory in Southeast Asia, Rayong, Thailand, July 4, 2024. (Reuters Photo)
EV cars are pictured inside BYD's first electric vehicle factory in Southeast Asia, Rayong, Thailand, July 4, 2024. (Reuters Photo)
by Daily Sabah with Agencies Sep 20, 2024 1:21 pm

Türkiye will impose strict conditions on the import of plug-in passenger and commercial hybrid vehicles from some countries, according to a notice published in the Official Gazette on Friday, as it intensifies the push for local production.

The new rules, which experts say will primarily impact imports from China and Japan, are seen as a message to foreign automakers engaged in negotiations with Türkiye to speed up their plans for domestic plants.

The notice, which takes effect in 30 days, follows a decision in June to limit imports of electric vehicles.

China has faced widespread criticism over its vehicle exports, which many countries claim are heavily subsidized by Beijing.

Analysts say Ankara is seeking to increase pressure on Chinese carmakers with which it is holding talks about investing in production in Türkiye.

The notice says an importer must meet conditions, including having 20 authorized service shops in seven different regions of Türkiye in order to import chargeable hybrid vehicles not produced in the European Union or in countries that have a free trade agreement with Türkiye.

Analysts say no importers meet the conditions.

"All plug-in hybrid vehicles that will come from now on will be blocked, apart from those in stock already. Other hybrid cars are already subject to a high customs tax," Erol Şahin, founder of EBS Danışmanlık consultancy, said.

He added the government was "toughening its message of hurry up" to the Chinese firms with which it is negotiating over domestic production.

The change, according to Şahin, could complicate inventory management for Chinese brands that have recently introduced or planned to introduce plug-in hybrid vehicles in Türkiye.

The move follows earlier restrictions in June, when Türkiye imposed additional tariffs on internal combustion engines and hybrid vehicles imported from China.

The government has justified these measures on the grounds of consumer safety and the promotion of investment.

Türkiye "will continue to implement regulatory import policies effectively in line with the safe supply of products to the market and the tracking of products during the life cycle and consumer protection," the Trade Ministry said in a statement on Friday.

In July, China's BYD, the largest EV producer in the world, agreed with the Turkish government to build a $1 billion plant in Türkiye with an annual capacity of 150,000 vehicles.

BYD's electric and rechargeable hybrid car production facility, which is planned to start production in western Manisa province at the end of 2026, is envisaged to employ up to 5,000 people directly.

Last week, Turkish sources said BYD's investment process in Türkiye continued without any problems, after China's warning to its companies about the risk of overseas investment.

China's Chery and state-owned SAIC Motor, which owns MG Motor, are also in talks.

In Europe, sales of fully electric vehicles have been falling more rapidly than those of hybrid cars, data has shown this week.

Türkiye's domestic car and light vehicle market was at 762,000 units for the first eight months of the year, around the same as last year.

Imports of Chinese brands jumped more than twofold to 63,000 units, taking 8% market share, according to industry data.

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  • Last Update: Sep 20, 2024 3:15 pm
    KEYWORDS
    automotive market auto sector automotive hybrid car market hybrid cars imports türkiye china
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