ISTANBUL
As Chinese cars are on the way to reaching a 10% market share in Türkiye in the first half of the year, Chinese-based automakers have announced their strategies and plans to invest in what they call “the gateway to Europe.”
A recently introduced additional 40% tax on Chinese combustion engine and hybrid car imports to Türkiye has seemingly borne fruit, as the Shenzhen-based electric vehicle (EV) maker BYD announced a $1 billion investment in Türkiye, which could bring about a “domino effect,” experts say.
A trade deal signed between BYD and the Turkish Industry and Technology Ministry includes the construction of a facility producing electric and rechargeable hybrid cars, expected to be established at the end of 2026, providing employment for 6,000 people.
Experts believe BYD’s decision prompted other Chinese-owned carmakers, such as DFSK Motor, Skywell, Chery, MG Motor, and SWM Autos, to follow suit.
Turkish EV distributor and representative Ulu Motor and executives from Skywell’s owner Skyworth met in the Turkish capital Ankara to expand their partnership and establish a production line in Türkiye.
DFSK executives also voiced their intent to pursue more investments and partnerships in Türkiye, where they already operate via the distributor SHS Otomotiv, as the overseas president of Chinese conglomerate Seres Group, the carmaker’s owner, said they see Türkiye as a “gateway to Europe,” where they would like to establish production facilities in collaboration with municipalities and business partners.
Meanwhile, Chery, the Chinese automaker with the largest share of the Turkish car market, released a statement on June 10 in which the head of Chery Türkiye said the automaker established a subsidiary in the country to better serve its customers, all the while accepting the government’s tax regulation decision, and pledging to start production in Türkiye as soon as possible.
As for MG Motor, the CEO of Dogan Trend Automotive, which represents MG in Türkiye, said MG’s management will establish production facilities in Europe, while Dogan is working to ensure construction in Türkiye, though making such an investment decision might take some time.
Additionally, SWM Motor, operating under Chinese conglomerate the Shineray Group, has finished applications for production in Türkiye, as the CEO of the carmaker’s Turkish representative ATMO Group said a facility with an annual production capacity of more than 50,000 vehicles will be built for exporting to the Balkans and other markets in Europe.
12 Chinese-based auto brands operate in Türkiye, and Chinese vehicles make up 8.3% of Turkish car market
Chinese brands’ significant interest in Türkiye was reflected in the number of firms entering the Turkish car market according to data from Türkiye’s Automotive Distributors Association.
The data said that of the 54 car brands sold in Türkiye, 11 are Chinese brands, namely Skywell, MG, Chery, Leapmotor, Seres, Maxus, Hongqi, DFSK, BYD, NETA, and SWM.
With the recent addition of Jaecoo, the number of Chinese carmakers in Türkiye has hit the dozen mark.
Total sales of Chinese automobiles and light commercial vehicles in Türkiye reached a little over 48,000, or 8.3% of the market.
In January-June, Chery sold the most cars among Chinese auto companies in Türkiye with over 34,500 units, followed by MG Motors with 11,000 and BYD with 1,400.
In one measure of Chinese cars’ progress in Türkiye, in February 2023, Chinese car brands made less than 1,000 sales in Türkiye, but by the end of the year they had reached a market share of 6.10%, or 59,000 units sold.
*Writing by Emir Yildirim
