Gov’t wants Chinese carmakers to invest in Türkiye

ISTANBUL

By imposing an additional 40 percent tariff on all Chinese-made passenger cars, the government is actually sending a message that it wants Chinese automakers to invest in Türkiye, according to experts.

With the customs duty hike, the government also aims to curb car imports — thus helping narrow the current account deficit and encourage Chinese automakers to invest in Türkiye, they said.

Passenger car imports surge 24 percent from a year ago to 203,000 units in the first four months of 2024.

Chinese companies sold more than 38,000 vehicles in January-May, which corresponded to a market share of 8 percent, up from 6 percent in the whole of 2023. Cherry, MG and BYD were best-selling Chinese brands.

When the additional tariff takes effect as of July 8, Chinese automakers are not likely to retain their share in the Turkish market, as price of their cars will go up, said the experts.

“While we are adapting to the changes, we are working intensively together with the Turkish ministries regarding the establishment of a plant in Türkiye,” said Si Fenghou, the president of Chery Türkiye.

The company is making efforts to start production in Türkiye as soon as possible, Si added.

“The tariff [on Chinese vehicles] came earlier than we had expected, and it was harsher than we had anticipated,” said Kağan Dağtekin, CEO of Doğan Trend, which markets MG vehicles in Türkiye.

Dağtekin noted that MG plans to build factories in Europe. “We are working to make sure that one of those plants is set up in Türkiye,” he said, adding that last week, they came close to signing a memorandum of understanding with MG.

“Taking a decision on making investment is a long process and nothing is certain. The Industry Ministry is involved in this investment issue and very supportive,” said Dağtekin.