BYD Türkiye CEO’s remarks on custom tariffs spark debate over pricing strategy

Recent remarks by Ismail Ergun, BYD Türkiye’s CEO, regarding Turkish custom tariffs ignited debates over Chinese electric vehicles (EVs) pricing strategy in Türkiye. He countered the claims of excessively high prices by highlighting strong sales figures.

In an interview with business-focused Oksijen TV on YouTube on Friday, Ergun discussed recent progress in Chinese EV giant BYD’s Türkiye operations following its factory investment agreement.

“We are exempt from all additional taxes,” Ergun said, arguing that BYD vehicles are sold at the most accessible prices in their segments under Türkiye’s market conditions. “Comparing with Chinese prices or even some European countries is not accurate,” he added.

However, Ergun’s statements sparked further debate about BYD’s pricing, as he reaffirmed exemptions on custom tariffs imposed on other Chinese manufacturers, while critics argued that prices could be much lower.

The world’s largest EV manufacturer benefits from exemptions on additional taxes of up to 40% for Chinese importers, as Turkish customs tariffs exclude brands that invest in Türkiye to establish manufacturing facilities. Nevertheless, it remains subject to a 10% duty on electric vehicles, alongside excise duties and motor vehicle taxes.

BYD’s cheapest model, the BYD Dolphin, is currently on sale for ₺1.284 million ($36,035) in Türkiye, compared to €29,000 ($30,457) in Europe.

BYD Türkiye’s stormy entry into market

The Chinese EV maker took its first step into the Turkish market with a major investment agreement worth $1 billion to establish a factory in Manisa with an annual production capacity of 200,000 vehicles, employing 6,000 people.

Following this move, Chinese auto giant BYD made a remarkable entry into the Turkish market, achieving 6,591 vehicle sales within just 32 days of launching its new products on Nov. 15.

Meanwhile, other renowned Chinese brands, Chery and MG Cars, are also exploring investment opportunities to establish production facilities in Türkiye. On Sept. 28, Turkish Minister of Industry and Technology Mehmet Fatih Kacir stated that negotiations with Chery had reached the “final stages.”

On Jan. 8, Dogan Trend Automotive’s CEO Kagan Dagtekin, the Turkish distributor of MG Cars, stated that “significant progress” had been made on a factory investment.