It is reported that discussions are ongoing to impose additional taxes on other fuel types after electric cars imported from China.
Due to the 50 percent customs tax that will enter into force on July 8, it has been suggested that sales prices will increase by an average of 40 percent.
Chery, which will be affected the most, announced that production in Turkey will be investigated. The market share of these brands in Turkey has exceeded 8 percent. While this rate was expected to reach 12 percent in a short time, additional taxes came.
An executive from the sector pointed out that the tax increase was announced after Foreign Minister Hakan Fidan’s trip to China, and stated that if this tax does not reduce the sales rate as much as expected, the regulation that requires distributors to own 20 services in seven regions, which is applied to electric cars, may also be applied to gasoline and hybrid vehicles.
Si Fenghuo, Turkey President of Chery, one of the brands that will be affected by the tax increase, said:
“We respect the government’s decision on tax regulation. Considering the current situation, while we are working to adapt to the changes, we are also working intensively with the relevant ministries to analyze the feasibility of building a factory in Turkey and manufacturing in Turkey. We are endeavoring to realize production in Turkey as soon as possible.”
Kağan Dağtekin, CEO of Doğan Trend Otomotiv, MG’s distributor in Turkey, said that they are making efforts to establish MG’s first production facility in Europe in Turkey. This new practice was realized earlier and harsher than we expected.”
After the tax, the price of Chery Omoda 5 Comfort, which is 1 million 328 thousand TL, may increase to approximately 1 million 860 thousand TL, and the price of MG HS Comfort 1.5T-GDI, which is 1 million 629 thousand TL, may increase to approximately 2 million 280 thousand TL.
Depending on the amount of support the brands can provide, these prices may go down, but it is certain that it will significantly reduce their competitiveness.
