Tax overhaul reshapes Turkish electric vehicle market

ISTANBUL

Türkiye’s electric vehicle (EV) market is undergoing a dramatic transformation following a recent tax overhaul that raised the lowest Special Consumption Tax (SCT) rate from 10 percent to 25 percent.

The change has triggered a wave of price hikes across top-selling models, pushing some EV prices close to 2.5 million Turkish Liras (approx. $76,000).

Among the most affected models is the domestically produced Togg T10X, which saw its price jump by 29 percent to 2.36 million liras. Tesla’s Model Y followed with a 20 percent increase, now selling for 2.24 million liras.

Other brands such as Kia, MINI, BYD, and Citroën have also revised their prices upward, with BYD’s Seal U model rising nearly 25 percent.

Electric vehicles had previously enjoyed a competitive edge thanks to favorable tax rates, capturing 27.4 percent of the market share in June.

That advantage is now eroding, making it increasingly difficult for EVs to compete with internal combustion models.

On a more optimistic note, Automotive Industry Association (OSD) Chairman Cengiz Eroldu described the revised tax rates and updated price thresholds — despite sparking debate — as a positive development from an industrial perspective.

“This step relatively enhances the competitiveness of domestic production while also partially supporting vehicle accessibility. The negative impact of higher tax rates will be somewhat offset by falling interest rates,” he said.

He emphasized that sustainable growth in the domestic market and an increase in the share of locally manufactured vehicles are critical for maintaining production volume and investment continuity.