Chinese brands see Türkiye as a ‘Gateway to Europe’
Türkiye exempts Chinese automakers with investment incentive certificates from an additional 40% tax, which could ignite increased investments, July 5, 2024.
Total sales of automobiles and light commercial vehicles in Türkiye increased by 11.3% in the January-April period of 2023 compared to the same period in 2022, reaching 371,438 units.
Automobile sales in this period rose by 16.62% to 294,837 units, while light commercial vehicle sales decreased by 5.2% to 76,601 units.
Number of Chinese brands on ODMD list to rise to 12
With the inclusion of new Chinese firms in the Automotive Distributors and Mobility Association (ODMD) list, the total number of brands in the market has reached 54.
Recently, there has been a noticeable increase in the interest of Chinese brands in Türkiye, which is reflected in the number of firms entering the market.
Ten Chinese brands – Skywell, MG, Chery, Leapmotor, Seres, Maxus, Hongqi, DFSK, BYD and NETA – currently dominate the Turkish automotive market.
This number is expected to rise to 12 with the upcoming additions of SWM and Jaecoo.
DFSK and Chery offer internal combustion engine vehicles in the Turkish market, while MG provides electric and internal combustion options. Other brands focus solely on electric models.
The luxury car brand Voyah is not listed in the ODMD.
Additionally, DFSK and Maxus also sell light commercial vehicles.
Market share of Chinese brands in Türkiye
In the first four months of the year, the total sales of Chinese automotive firms (automobiles and light commercial vehicles) in Türkiye reached 29,539 units, capturing a 7.95% market share.
DFSK and Maxus also include commercial vehicle sales among Chinese brands. Excluding these, Chinese brands sold 29,241 automobiles, achieving a 9.91% market share.
Top-selling Chinese brands
Looking at the sales figures of Chinese automotive firms in Türkiye for the January-April period, Chery leads with 20,782 units sold. MG follows with 7,185 units sold, and BYD ranks third with 862 units sold. DFSK, including automobile and light commercial vehicle sales, sold 260 units and Maxus sold 168 units.
Sales were below 1,000 in February 2023
In February 2023, when Chery and some other Chinese brands had not yet started their sales, the total sales of Chinese brands were below 1,000 units. Throughout 2023, Chinese brands achieved 59,097 sales in the Turkish market, which had a total of 967,341 automobile sales, resulting in a 6.10% market share.
This indicated that Chinese brands have strengthened their position in the Turkish market in terms of both sales numbers and market share.
Chinese brands see Türkiye as a ‘Gateway to Europe’
Chinese brands frequently describe Türkiye as a “gateway to Europe,” raising questions about whether they will start production in Türkiye.
Minister of Industry and Technology Mehmet Fatih Kacir mentioned that Chery and BYD are considering investments in Türkiye, with advanced discussions taking place. Chery Group Chairman Yin Tongyue also confirmed that investment in Türkiye is still on the table.
Company officials have stated that Türkiye remains a top candidate for Chinese brands’ production and battery investments, especially regarding electric vehicle regulations and developments.
