Chinese Brands Face Higher Taxes, Vehicle Prices Set to Rise
Additional Taxes on Chinese Vehicle Imports: What Will the Future Hold?
In a recent announcement, it was revealed that a 40 percent additional customs duty will be imposed on all vehicle groups imported from China, bringing the total tax on Chinese vehicle imports to 50 percent, including a 10 percent customs duty and the new 40 percent tax. This decision has raised questions about the future of Chinese vehicle manufacturers in Turkey and the impact on consumers.
Turkey currently imports automotive products worth 1 billion dollars from China, with Chinese vehicles gaining popularity in both the Turkish and European markets in recent years. Despite this trend, Chinese brands have favored investing in Europe over Turkey.
The Istanbul Motor Vehicle Dealers Association (İMAS) President Hayrettin Erkaynak shared his insights on the new tax decision. He noted that Chinese brands have become a rising trend in the automotive industry, offering quality cars at affordable prices. The decision to impose additional taxes was seen as a measure to maintain market balance in the face of increasing competition and the rising influence of Chinese brands.
Erkaynak highlighted the possibility of Chinese brands investing in Turkey to avoid taxes, as seen with some European brands that have production centers in the country. He emphasized that investments from Chinese brands could potentially exempt them from additional taxes.
The question remains whether Chinese brands will continue to invest in Turkey after the new tax is implemented. With extensive R&D efforts and technological advancements, Chinese brands have positioned themselves as major players in the global automotive industry. The growth of China’s automotive sector is part of the country’s national trade projects to assert its influence in world trade balances.
The new tax decision is expected to affect the sales of approximately 15,000 vehicles annually in Turkey. Despite potential price increases, Chinese brands are likely to maintain their market presence due to their popularity and demand among consumers.
As prices for Chinese vehicles are set to increase, consumers may see an average price hike of 250-300 thousand TL. The new tax is scheduled to come into force on July 7, prompting questions about potential discounts from Chinese brands and the future of second-hand sales and spare parts availability.
In conclusion, Chinese brands are expected to weather the impact of the new tax decision and continue to thrive in the Turkish market. Brands like Chery and MG remain popular choices for consumers, with prices starting around 1,350,000 TL. As the automotive industry adapts to these changes, the future of Chinese vehicle imports in Turkey remains a topic of interest and speculation.
