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Automotive Industry
On Monday, the Turkish Ministry of Trade announced new tariffs on car imports, which will come into effect in the second half of November. The import of electric cars will be hit harder than that of combustion engines.
The regulation applies to vehicles imported from countries outside the EU and countries with which Turkey has signed free trade agreements, according to a statement from the Ministry of Trade. The tariffs are primarily intended to support domestic car production: ‘Our ministry is continuing its efforts to protect domestic and national production from the pressure of intense imports and unfair competition, while at the same time securing jobs and reducing the current account deficit.’
The decision was published in the Official Journal and will come into force 60 days after publication. The following additional customs duties will then apply:
At the same time, the special tariffs of 60 per cent on US car imports, which have been in place since 2018, will be removed, and US imports will now be subject to the same tariffs mentioned above.
As the Türkiye Today portal writes, the decision is likely to ‘have a particular impact on imports of well-known global brands that are not produced locally, such as the Japanese companies Toyota, Honda and Nissan, the South Korean car manufacturers Hyundai and Kia, and the electric vehicle manufacturers Tesla and BYD’.
In the case of the Chinese car manufacturer, however, the impact is likely to be limited: BYD is currently building a plant in Turkey and plans to start production there at the end of 2026. Hyundai is also set to start production (SoP) of the Ioniq 3 electric compact car at its Turkish plant in İzmit next year, specifically in August. However, only models produced locally will be exempt from Turkish customs duties, and all other imported vehicles from the manufacturers will continue to be subject to the new regulation.
According to the report, a transition period will be granted for ‘import transactions already in progress’ before the regulations come into force. However, no details are given.
Turkey has a growing car production industry, but the vast majority of vehicles manufactured there are exported, primarily to Europe. The country’s largest car manufacturers include Ford Otosan, Toyota (though not electric cars), Hyundai, Renault, Tofas (for Fiat/Stellantis) and the Turkish electric car manufacturer Togg. With over 1.47 million cars, Turkey is the fourth-largest producer in Europe. The Ministry of Trade expects export volume to exceed $41 billion for the current year.