The Turkish automobile industry, which has been booming in recent years, is now facing a growing competition from China. Turkish car manufacturers, who have been able to take advantage of their strategic position at the crossroads of Europe and Asia, today find themselves under pressure, while Chinese brands are gaining market share. With competitive vehicles at attractive prices, Chinese manufacturers of electric cars (EV) are quickly establishing themselves in the Turkish landscape, posing serious challenges to the local industry.
The rise of Chinese vehicles in Türkiye
Chinese manufacturers, well established in the sector of electric vehicles, take advantage of their expertise and their massive production capacities to conquer new markets. In Türkiye, a country where demand for electric cars continues to grow due to environmental concerns and government incentives, Chinese brands offer vehicles at more competitive prices than their European or Turkish counterparts.
This situation puts considerable pressure on local manufacturers like TOGG, the new Turkish electric vehicle brand, which struggles to compete on production costs and technological innovation. Chinese companies, benefiting from massive subsidies from their government, have a major competitive advantage, particularly in terms of price, energy efficiency and vehicle autonomy.
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Government support in Türkiye: sufficient to counter the Chinese offensive?
Faced with this growing threat, the Turkish government is trying to protect its burgeoning electric vehicle industry. Tariff measures, aimed at restricting the import of Chinese cars, have been put in place to stimulate local production and limit the impact of cheap imports. These taxes on Chinese electric vehicles are seen as a strategy to favor TOGG, a symbol of national pride in automobile production.
However, this protectionist approach has not been well received by Beijing. Indeed, China recently filed a formal complaint with the World Trade Organization (WTO), accusing Turkey of putting in place unfair trade barriers against its electric vehicles.
WTO conflict: China attacks Turkish tariffs on electric vehicles
The situation has recently become tense with the complaint filed by China against Turkey at the WTO. Beijing accuses Ankara of commercial discrimination by imposing high tariffs on electric vehicles imported from China. This complaint comes against a backdrop of fierce global competition around green technologies and clean vehicles.
The motivations behind the Chinese complaint
According to the Chinese authorities, these tariffs constitute a violation of international trade rules and prevent Chinese manufacturers from competing fairly in the Turkish market. This move marks a turning point in trade relations between the two countries, with China being one of Turkey’s main trading partners.
Turkey, for its part, justifies these measures by its need to protect its local automobile industry, still developing, against international giants capable of producing at much lower costs. Ankara also claims that these taxes aim to promote local production and stimulate the national economy by supporting projects such as TOGG’s.
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A trade conflict with global issues
This dispute could have repercussions on trade relations between Turkey and China, but also on the global automobile industry, as more and more countries turn to electric vehicles to respond to climate challenges. If China wins its case at the WTO, it could force Turkey to review its tariff policies, further opening its market to Chinese brands.
For now, Turkey appears determined to maintain its protective measures, despite growing pressure from Beijing. However, the outcome of this complaint could reconfiguring the balance of power in the electric vehicle market in Türkiye, and potentially beyond, in other countries adopting similar measures.
An uncertain future for the Turkish automobile industry
The rise of Chinese manufacturers and this conflict at the WTO are signs that Turkey will face growing challenges in its ambition to become a regional leader in electric vehicles. As TOGG prepares to launch its first models on the market, uncertainty around trade relations with China could disrupt the long-term plans of the Turkish automotive industry.
To stand out against Chinese competition, Turkish manufacturers will need to innovate and focus on improving their own vehicles, by focusing on cutting-edge technologies and sustainable mobility solutions. If Turkey can overcome these challenges, it could not only consolidate its place in the domestic market, but also export its electric vehicles to other regions of the world.