The increased customs duty applied to internal combustion engines and some hybrid vehicles imported from China will be reflected in increased automobile prices. Sector representatives state that this regulation will directly affect the prices of Chinese automobile brands in Turkey.

According to the latest regulation, the additional customs duty rate collected from internal combustion engines and some hybrid engine vehicles imported from China has been increased from 40% to 50%. This increase is expected to be reflected quickly in automobile prices.

A Step to Support Domestic Production

The Ministry of Commerce started to collect an additional customs duty of 40% on such vehicles imported from China in June last year to encourage domestic automobile production and increase investments in the domestic market. However, this rate was increased towards the end of the year, and the minimum customs duty amount collected per vehicle was increased from 7 thousand dollars to 9 thousand 500 dollars. This rate remained the same for plug-in hybrid vehicles (PHEV).

“It Will Affect Prices in Türkiye”

Cardata General Manager Hüsamettin Yalçın stated that Chinese brands, such as Chery and MG, in particular, will be affected by this regulation and said:

“This decision aims to increase the market share of domestic production. However, since the costs of gasoline and hybrid vehicles imported from China have increased, prices in Turkey will also increase accordingly.”

Yalçın also predicts that despite the regulation, the number of imported vehicle models will continue to increase, and domestic production will continue to be under market pressure.

Additional Conditions Introduced for Imports

Another regulation published on the same day expanded the scope of electric and hybrid vehicles subject to import permits. According to the regulation published in the Official Gazette, semi-trailer tractors, tractors, minibusses, and mopeds were included in this list.

On the last day of 2023, the regulation that licensed the import of electric and hybrid vehicles required importers to establish 20 authorized service stations and a call center in seven geographical regions.

A Difficult Process for Chinese Brands

These regulations cover countries such as China that are not part of the EU Customs Union and do not have a free trade agreement. Even though Chinese car manufacturers have an important place in exports, many countries impose additional customs duties on vehicles imported from China because they receive state support. This situation makes it even more difficult for Chinese brands to enter new markets.

Source : Web