On December 9, Beijing time, Türkiye issued a decree last month that seemed intended to restrict the import of Chinese electric vehicles.Prior to this, the EU launched a countervailing investigation into Chinese electric vehicles.According to a decree issued by the Turkish Trade Ministry last month, companies importing electric vehicles to Turkey must have at least 140 authorized service stations in the country, which must be evenly distributed across Turkey. and,Each electric vehicle brand should open a telephone service center.
The cumbersome requirement is widely seen as targeting Chinese electric vehicles, as goods imported from the EU and countries that have signed free trade agreements with Türkiye are not subject to the decree. Moreover, electric vehicle importers are pressed for time to comply with the regulations by the end of this month, which is an almost impossible task for many importers.
Türkiye is Europe's sixth-largest car market, and the sudden change in attitude heralds setbacks for companies selling Chinese cars in Türkiye. Now, electric car importers are lobbying the Turkish government to amend the decree, or at least delay its implementation, to avoid such strict regulations being too damaging.
"These regulations are so strict that so far no brand has been able to comply."Erol Sahin, CEO of automotive consulting company EBS, said.
Shaheen pointed out that the biggest trouble is that it requires importers to set up their own service stations, which will complicate their transactions with authorized third-party service providers.
Electric cars are popular in China
Currently, electric vehicles are increasingly popular in Türkiye, thanks to the relatively cheap prices of Chinese brands, favorable reviews of Türkiye's domestic car Togg, and Tesla's recent entry into the country. Data from industry association ODMD show that as of November this year, electric vehicle sales in Türkiye have increased nearly 10 times year-on-year and currently account for 7.1% of total passenger car sales.
In the first 10 months of this year, China sold $184 million worth of electric vehicles to Türkiye, almost twice as much as in all of 2022. Earlier this year, Türkiye imposed a 40% tariff on electric vehicles imported from China, raising the total tariff rate to 50%.
An unnamed Turkish official said:The new regulations aim to regulate the rapidly growing electric vehicle industry so it can move forward in a controlled environment.The official said there were no plans to change the rules or delay implementation.
Ismail Ergun, general manager of BYD Turkey, said the company plans to establish an authorized service network across Turkey and has been signing contracts with dealers to provide services to customers. "If the regulation is implemented as planned, imported cars may have to wait at the Turkish border for several months," he said.
"The basic philosophy of this regulation is sound because it's designed to protect consumers,"Kagan Dagtekin, CEO of car dealer Dogan Trend Otomotiv, which distributes the MG brand owned by China's SAIC Motor, said, "However, people should be careful about going too far. Competition laws should be considered and the existing dealer system should be treated openly."