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On November 29, 2023, Turkey’s Ministry of Industry and Technology issued a sweeping new regulation:
“Except for vehicles eligible for exemption, all imported new energy vehicles (NEVs) must obtain a special permit to enter the Turkish market.”
To qualify for this permit, EV brands must meet stringent after-sales service requirements. These include:
Establishing a nationwide network of at least 140 authorized service stations;
Opening a Turkish-language call center with at least 40 employees;
Appointing a local authorized representative;
Meeting technical certification standards for maintenance personnel and service facilities;
Submitting a written guarantee to monitor and manage battery safety systems.
While the Turkish government claims the move is designed to ensure product quality and consumer protection, many industry observers see it as a direct barrier to fast-expanding Chinese EV brands. Two points make this clear:
EVs imported from EU countries are exempt, thanks to Turkey’s free trade agreement with the EU.
China exported $184 million worth of EVs to Turkey in the first 10 months of 2023—making it the largest non-exempt source.
Industry analysts like Erol Sahin, CEO of Istanbul-based consultancy EBS, argue that the new rules are nearly impossible for many Chinese brands to meet before the end-of-year deadline. Some companies are lobbying the Turkish government to soften or delay implementation—but as Bloomberg reports, early responses from Ankara suggest no such flexibility.
A Pattern of Policy Escalation
This is not the first time Turkey has taken protectionist action. Back in March 2023, Ankara raised import tariffs on Chinese EVs to 40%, compared to just 10% for vehicles from other countries. The move sparked controversy within Turkey, as many feared it would hinder domestic EV adoption and slow the development of Turkey’s own nascent EV supply chain.
Now, with the latest regulation, Turkey appears to have shifted strategy:
Rather than blocking Chinese brands outright through tariffs, it is now pressuring them to invest locally, under the banner of “after-sales service compliance.”
A KPMG analysis of the policy outlines specific certification standards that EV brands must meet, including:
Establishing at least 20 certified maintenance centers across 7 geographical zones;
Ensuring certified technicians with TSE or equivalent credentials;
Operating a Turkish-language customer service hotline;
Deploying a local legal representative;
Documenting systems for battery monitoring and maintenance.
Why This Matters: Turkey’s Underdeveloped EV Infrastructure
The push for stronger local service networks reflects a major gap in Turkey’s own infrastructure. As of Q3 2021, the country had only 1,200 public charging stations, spread across a landmass of 783,000 square kilometers—roughly one charger per 650 km².
To address this, Tesla, which entered Turkey in 2022, committed early to building a Supercharger network across 10 provinces, including Istanbul, Ankara, İzmir, and Bursa. By late 2023, Turkey reported over 10,100 public charging points, with 2,800 of them fast chargers—a significant but still insufficient network for the booming EV market.
The Hidden Agenda: Protecting the Homegrown “TOGG” Brand
There’s another layer to Ankara’s clampdown—supporting its domestic EV champion, TOGG (Türkiye’nin Otomobili Girişim Grubu).
Founded in 2017 with $1.2 billion in government-backed investment, TOGG is backed by five of Turkey’s largest conglomerates and has received sweeping incentives: tax breaks, land grants, low-cost loans, and government commitments to purchase 30,000 vehicles annually through 2035.
TOGG’s first model—the fully electric SUV T10X—hit the market in May 2023. Within a month, it had over 170,000 orders. Production was ramped up from an initial plan of 12,000 units to 20,000 for 2023, with projections of 1 million units by 2030, including exports.
So it’s no coincidence that just as Chinese brands surged into the Turkish market, new policies arrived to raise the entry bar—ostensibly on neutral grounds of service and safety, but practically to give TOGG breathing room in a fast-growing market.
A Rapidly Maturing EV Market
Just three years ago, Turkey’s annual EV sales barely topped 800 vehicles. In 2021, sales jumped to 4,000, and by 2022, EV and hybrid sales exceeded 10,000.
Fast-forward to 2023:
From January to October alone, 48,883 EVs were sold, an 889.7% year-on-year increase. Combined EV and hybrid sales reached 78,387 units, surpassing diesel car sales (111,354) for the first time.
Local industry groups attribute this acceleration to three drivers:
The TOGG project, which created buzz and political support;
Tesla’s market entry, bringing premium visibility and infrastructure;
The influx of Chinese EV brands, including MG, Skywell (Skyworth), BYD, Chery, and Neta.
According to ODMD data, by October 2023, 27 EV brands were active in Turkey—six of them Chinese, accounting for more than 20% of total brand presence.
Who’s Most Affected?
The best-selling EV in Turkey in 2023 was Tesla Model Y (10,700 units), followed by TOGG T10X (9,171). MG4 sold 2,167 units, Skywell also gained strong traction, and other notable entrants include BYD, Chery, and Neta.
While Turkey’s total market volume (730,000 vehicles sold in the first 10 months) remains modest compared to China, the barriers introduced could set a precedent for how other developing markets manage the rise of Chinese EVs.
Strategic Takeaways for Chinese Brands
Despite the restrictive measures, Turkey still offers opportunity—especially as a strategic bridge to the EU. Its customs union with the EU and proximity to Eastern Europe echo Mexico’s role in the U.S. auto industry.
Some Chinese automakers are already adapting:
Skywell partnered with Ulubaşlar Group to establish a local battery factory;
BYD signed an MoU with ALJ Turkey to serve as its local distributor;
Other players are eyeing Turkey as a possible assembly base for EU exports.
In short, while Ankara’s latest “interceptions” complicate the game, they also raise the stakes for those who can play long-term.
For brands with solid supply chains and global ambitions, investing in local infrastructure—whether through partners, JVs, or wholly owned operations—may be the only path forward in the new Turkish EV order.
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