According to Bloomberg, Turkey has recently strengthened restrictions on the import of Chinese-made electric vehicles, becoming another country to take action after the European Union launched an anti-subsidy investigation into Chinese electric vehicles.
According to a decree issued last month by the Turkish Ministry**, companies importing electric vehicles must have at least 140 authorized service stations across the country and open a call center for each brand.
Industry observers believe that this complicated requirement is mainly aimed at Chinese-made electric vehicles. Because vehicles imported from the European Union and countries with free ** agreements with Turkey will not be subject to the Decree. All importers need to meet the requirements by the end of the month, which is an almost impossible task for many companies.
Turkey is the sixth-largest car market in Europe, and this abrupt shift has come as a setback for companies that sell Chinese cars in Turkey. These companies are struggling to seek to modify or postpone these stricter regulations in order to mitigate the disruptive impact on their businesses.
The regulations are very strict, and as of today, no brand has been able to meet the requirements. "The biggest problem is the requirement for importers to set up their own service stations, which will complicate importers' transactions with authorized third-party services," said Erol Sahin, CEO of the automotive consultancy EBS. ”
Electric vehicles are becoming increasingly popular in Turkey, thanks to the most affordable Chinese brand, the well-known Turkish domestic car Togg, and the recent entry into the market. From January to November this year, electric vehicle sales in Turkey increased almost 10 times compared to the same period last year and now accounts for 71%。
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A Turkish*** told Bloomberg that the purpose of the new rules is to ensure that the fast-growing electric vehicle industry can develop in an orderly and controlled environment. The ** indicated that there are no plans to amend the regulations or postpone their implementation.
China is Turkey's main importer, and as of November, goods from China contributed to Turkey's ** deficit increasing to nearly $100 billion. Among them, passenger car imports are an important reason for the increase in the country's ** deficit. In the first 10 months of this year, China exported $1$8.4 billion in electric vehicles, almost double the number in all of 2022. Earlier this year, Turkey imposed an additional 40% tariff on Chinese electric vehicles, raising the total tariff rate to 50%.
"It would be a shame if the purpose of the decree was to get Togg to sell more cars," said Sahin of EBS. For TOGG to develop further, it should also face competition in the domestic market. ”
Ismail Ergun, general manager of BYD Turkey, said that BYD plans to establish an authorized service network across Turkey and sign contracts with dealers in order to provide services to customers. "If the regulations go as planned, imported cars may have to wait at the border for months," Ergun said. ”
The idea behind this regulation is correct, and it is designed to protect consumers," said Kagan Dagtekin, CEO of Dogan Trend Otomotiv, a distributor of MG cars. At the same time, we should also take into account competition law and fair treatment of existing dealer groups. ”
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