An additional 10 percent customs duty was imposed on electric vehicles imported from countries outside the scope of the Customs Union and Free Trade Agreement. The decision will directly increase the sales price of many electric cars from the Far East, especially China and Japan. Model 3 of the world giant Tesla, which will enter the Turkish market in a short time, will also be affected by the additional tax since it is Shanghai production.
An Additional 10 Percent Customs Duty Was Imposed On Electric Vehicles To Be Imported From Countries Such As The USA, China , Japan, India, Canada and Vietnam, which are outside the scope of the Free Trade Agreement and Customs Union . President on the subjectIts decision was published in the Official Gazette yesterday. Accordingly, for example, the customs duty on electric vehicles from China and Japan has increased to 20 percent. The decision will not affect electric vehicles imported from European Union (EU), EFTA (Switzerland, Norway, Iceland and Liechtenstein) and Free Trade Agreement countries (21 countries such as Israel, South Korea, Morocco, Tunisia, United Kingdom). However, the prices of electric vehicles coming to Turkey from countries such as the USA, India and Vietnam, especially China and Japan, will change. According to experts, these vehicles can be sold directly for 10 percent higher. In Addition, The Price Of Tesla ‘s competitive car Model 3, which will enter the Turkish market soon, will increase as its production takes place in Shanghai.
HOW WILL IT IMPACT TOGG ?
Industry officials, whose opinions we received on the subject, reminded that many new electric cars, mainly Chinese and Japanese, will enter the Turkish market, especially at the end of this year and in 2023. Experts say that this decision may affect the competitiveness of brands coming from the Far East in the Turkish market, adding, “Especially China has been working in the field of electric vehicles for many years. They dominate markets with low-cost electric vehicles. Therefore, the fact that 20 percent tax will now be charged on vehicles coming from China will affect their competitiveness in the Turkish market. Of course, it would not be right to directly link this situation to Togg, but in the long run, it may provide an advantage for Togg, especially in the domestic market.”
‘FAR EASTERN APPROACH DECREASES ‘
Currently, there are 3 Chinese electric car manufacturers, namely MG, Seres and Skywell, which are officially distributors in Turkey. Kağan Dağtekin, CEO of Doğan Trend Automotive, the Turkey distributor of MG, used the following expressions in his statement to Hürriyet: “When we evaluate it from a sectoral point of view, this new tax regulation naturally reflects on prices at the same level. In the medium and long term, it reduces the appetite of the brands coming from the Far East and which are planned to come later. Especially in this period when the demand for electric vehicles in Europe is very strong, manufacturers think that they will be more profitable and give priority to European markets and I think they will show less interest in the electric vehicle market in Turkey. On the MG side, we will evaluate what we can buy from factories in other countries.”
THE PRICE OF FOUR MODELS WILL INCREASE
It is estimated that 4 models, which are offered for sale in Turkey and will be available soon, will be affected by the additional tax decision in the first place. 3 of these models come from China and the other from Japan. DFSK Seres 3, Skywell ET5 and MG’s upcoming new ZS EV are listed as electric car models from China. Subaru Solterra, on the other hand, is produced in Japan and offered for sale in the Turkish market. It is estimated that the prices of these models will increase by 10 percent with the additional customs duty. Meanwhile, brands such as Honda and Toyota were preparing to offer their new electric vehicles for sale in the Turkish market in a short time. With the decision taken, the electric cars of these manufacturers will also be included in the new customs tax, which will be applied as 20 percent.
20 PERCENT TAX ON TESLA MODEL 3
Electric vehicle giant Tesla, which will enter the Turkish market in a short time, was also affected by the additional customs tax. Because the Model 3, one of Tesla’s most competitive cars, is produced at the factory in Shanghai, China. For this reason, the Model 3 was included in the 20 percent customs tax before it was officially offered for sale in the Turkish market. Model 3 was offered for sale in Europe with prices starting from 50 thousand Euros. On the other hand, the world’s giant company plans to produce another important car, the Model Y , in its factory in Germany And Put It On Sale In Turkey. Therefore, Model Y is not affected by the additional tax.
NO ADDITIONAL TAXES WILL BE TAKEN FROM THESE COUNTRIES
The decision only covers countries that do not have a direct trade agreement with Turkey. These countries consist of the countries in the GTS (Generalized System of Preferences) and ‘Other Countries’ column. For example, countries such as India, Vietnam, Ghana, Congo, Ukraine are referred to as GTS. ‘Other Countries’ include countries such as the USA, Japan, China, and Canada. The countries that will not be affected by the 10 percent additional customs tax are as follows: “European Union countries, EFTA countries (Switzerland, Norway, Iceland and Liechtenstein), countries with FTA (Israel, Macedonia, Bosnia-Herzegovina, Palestine, Tunisia, Morocco, Egypt, Albania, Georgia, Montenegro, Serbia, Chile, Mauritius, South Korea, Malaysia, Moldova, Faroe Islands, Singapore, Kosovo, Venezuela and the United Kingdom).