Türkiye will expand the scope of additional tariffs to all passenger cars imported from China starting next month to increase the market share of domestic carmakers and reduce its account deficit.
Türkiye will adjust tariffs on Chinese passenger cars on July 7, the Ministry of Trade announced on June 8. The 40 percent additional tariff on imported electric vehicles from China, introduced last year, will also be applied to fuel-powered autos, with a minimum tariff of USD7,000 per car.
Türkiye announced the addition of a 40 percent tariff on imported Chinese EVs in March last year, raising the total tariff to 50 percent. The latest adjustment will impact Chery Automobile, BYD, Hongqi Auto, Seres, Leapmotor, and other carmakers, according to statistics from Türkiye's official vehicle association.
Raising tariffs on Chinese car imports can help Türkiye increase fiscal revenues amid its large trade deficit and economic downturn, according to Cui Dongshu, secretary-general of the China Passenger Car Association. In addition, the country is promoting the development of its EV industry and needs to raise tariffs to protect the domestic auto industry as Chinese carmakers have strong competitiveness, Cui added.
The new tariffs will completely offset the price advantage of vehicles from China, with Chinese brands with small sales to face losses in Türkiye, according to an analyst.
However, Chinese carmakers can overcome the challenge due to the large trade deficit and the not well-developed auto industry in Türkiye despite certain adverse impacts, including higher cost pressure, hampered development, and slower growth, Cui noted, adding that they still performed well even after the tariff hike last March.
Türkiye has a weak local auto manufacturing industry, with about 70 percent of vehicles exported to international markets. It is the second largest car exporter in Europe after the United Kingdom.
Türkiye's light vehicle sales reached 1.23 million units, with Chinese brands accounting for 42,300 units, of which Chery sold 41,500 units. Türkiye car sales rose 6 percent to 472,000 units in the five months ended May 31 from a year earlier, with 28,600 Chinese units, expanding their market share to 6.1 percent.
（Picture: Veer）
