Tax shake-up may fuel August sales surge in auto market
ISTANBUL
A sweeping overhaul of Türkiye's Special Consumption Tax (SCT) system at the end of July has flipped the country’s automotive market dynamics, driving demand for domestically produced vehicles and setting the stage for a potential all-time sales record in August.
Under the new rules, tax rates on electric, plug-in hybrid (PHEV) and premium-class models increased, while domestically manufactured cars saw reductions of 5 to 10 percentage points.
The move, which the Treasury and Finance Ministry announced was aimed at balancing car imports and reducing the current account deficit, appears to have met expectations in August.
While initial comments following the regulation pointed to a decline in automotive market sales, on the contrary, strong interest in models with reduced SCT has made a new record in August seem all but certain.
Consumers quickly seized the opportunity, rushing to locally made models that face the risk of sudden SCT hikes.
Experts note that with factories resuming production after the usual early‑August shutdowns, the market could reach sales of 100,000 units — a first for August.
According to Cardata General Manager Hüsamettin Yalçın, the regulation led to average price increases of 7 percent in passenger cars, 8 percent in SUVs and 9 percent in light commercial vehicles.
“This pushed consumers toward models offering the advantage of local production, reshaping the market’s sales dynamics,” he said.
Gülan Automotive Chairman Alp Gülan stressed that August is usually a slower month due to local manufacturers’ summer breaks and the holiday season.
“The SCT regulation reversed the trend,” he explained.
“Consumers have increased their interest in locally produced models with reduced tax rates because they understand the tax system well. They’re aware that any rise in exchange rates could boost SCT rates on these models,” Gülan said.
