A new regulation was made regarding the additional customs duty applied to Chinese automobile brands with the Presidential Decree. Chinese automotive brands that will invest in Turkey will now exempt from additional customs duties on imports.
Changed Tax Application
In June, a presidential declaration decided to impose additional taxes on internal combustion and hybrid passenger cars imported from China. However, with the new regulation, additional customs duties will not be applied to Chinese brands that will invest in Turkey within the scope of the investment incentive certificate. In this way, investors will be exempt from additional financial obligations.
Opportunities for Investment Are Increasing
This regulation has created a significant opportunity for Chinese automobile brands that intend to invest in Turkey. The desire of brands such as Chery and MG to become stronger in the Turkish market is particularly striking. Turkey’s large market, strategic location and advantages such as the European Union Customs Union Agreement are among the factors that attract Chinese brands.
BYD’s Investment in Turkey
China’s leading electric vehicle manufacturer BYD will invest $1 billion in Manisa to establish its second European production base in Turkey. This investment will increase the power of Chinese brands in Turkey’s automotive sector and will also contribute positively to the regional economy.
The Place of Chinese Brands in the Turkish Market
Among the Chinese brands that have established themselves in the Turkish automotive market are Skywell, MG, Chery, Leapmotor, Seres, Maxus, Hongqi, DFSK, BYD and NETA. The shares of these brands in the Turkish market are increasing and bringing new dynamism to the sector.
Conclusion
The customs duty regulation for Chinese automobile brands is considered an important step taken to attract international brands and encourage investments in Turkey’s automotive sector.
