In a significant move to boost its electric vehicle (EV) industry, Türkiye has announced the removal of additional tariffs on EV imports from the Chinese mainland. This policy shift aims to attract more investment from Chinese manufacturers, who currently hold a 10% market share in Türkiye's automotive sector.
According to The Daily Sabah, a presidential decree published on July 5 in the Official Gazette reduces import duties from a hefty 40% additional tariff to a more manageable 10% standard tariff. This reduction not only makes it easier for Chinese automakers to enter the Turkish market but also positions them strategically close to the European Union (EU), where they are navigating new rounds of tariffs.
Last March, Türkiye imposed a 40% additional tariff on EVs imported from the Chinese mainland, bringing the total tariff to 50%. This policy was further expanded on June 8 to include all Chinese imported vehicles and auto parts, introducing a minimum tariff of $7,000 set to take effect on July 7.
China has expressed strong dissatisfaction with these measures. The Ministry of Commerce (MOFCOM) criticized the tariff hike as contrary to World Trade Organization (WTO) rules, stating that it harms businesses on both sides and negatively impacts local Turkish consumers. MOFCOM also highlighted that such policies could undermine the investment confidence of Chinese companies in Türkiye.
Industry insiders in Türkiye believe that the recent tariff adjustments are designed to pressure Chinese auto companies, especially those in the EV sector, to establish local production facilities. By encouraging Chinese manufacturers to invest in Türkiye, the government aims to strengthen the domestic auto industry and reduce dependency on imports.
Türkiye's long-standing efforts to attract carmakers have particularly focused on Chinese enterprises. With a customs union agreement with the EU, Türkiye recently imposed additional provisional duties of up to 38% on Chinese EV imports, as reported by Hürriyet Daily News.
The latest tariff exemption, as reported by Daily Sabah, is intended to incentivize Chinese EV manufacturers to invest in Türkiye. Negotiations are currently underway with Chinese companies nearing investment commitments. Once these commitments are finalized, tariff exemptions will be granted. However, failure to invest within the specified timeframe, as outlined by Turkish regulations, will result in the withdrawal of these benefits.
