Additional Tax on Cars from China Increases to 50 percent

The customs duties on cars imported from China to Turkey have been raised. The additional customs tax on Chinese gasoline and hybrid vehicles has increased from 40% to 50%. This new regulation is expected to lead to a cost increase of approximately 10% in car prices.

As of January 1, 2025, the new customs tax decision for Chinese cars came into effect. Published in the Official Gazette on December 31, 2024, the new regulation raised the additional customs tax on Chinese gasoline and hybrid cars from 40% to 50%. Therefore, with the current 10% customs tax, the total tax rate on internal combustion and hybrid vehicles has now reached 60%. The additional 40% tax rate on electric and plug-in hybrid vehicles (PHEVs) remains unchanged.

Impact on Sales Prices

Hüsamettin Yalçın, CEO of automotive data analysis company Cardata, stated that this regulation will particularly affect the prices of Chinese car brands such as Chery and MG in Turkey. He emphasized that this decision, aimed at supporting local production and increasing its market share, will increase the costs of imported gasoline and hybrid vehicles from China.

Erol Şahin, General Manager of EBS Consultancy, noted that this new regulation could be seen as a continuation of the tax increase on Chinese vehicles that began earlier this year. He explained, “The additional customs tax on internal combustion and hybrid vehicles, which are not eligible for incentives, has been increased by 10%, reaching 50%. While this may restrict competition in the domestic market, it can be seen as significant support for the sale of locally produced cars.” Şahin also mentioned that this new tax regulation is expected to result in about a 10% cost increase for Chinese imported vehicles.

Declining Market Shares

Chinese car brands, which had increased their market share in Turkey to 10% with record sales, were confronted with high taxes as they prioritized factory investments in European countries. The previous 40% additional customs tax on Chinese electric vehicles was extended to all fuel types on July 8, 2024. Since this regulation came into effect, the market share of Chinese brands has started to decline. It is expected that the new regulation will further reduce their market share in the Turkish market.

New Service Requirements for Motorcycles

Erol Şahin also drew attention to a new regulation for motorcycle brands in the Official Gazette on December 31, 2024. He explained that, “The requirement to establish 20 service and call centers in 7 geographic regions according to TSE standards, which previously applied only to electric and plug-in hybrid cars from China, will now also apply to commercial vehicles and motorcycles.”