Skip to content

Chery hikes prices by $3,050 following Türkiye’s import tax on Chinese cars

Chery hikes prices by $3,050 following Türkiye's import tax on Chinese cars A view shows a car logo of Chinese automobile manufacturer Chery at a dealership in Vladivostok, Russia, March 22, 2023. (Reuters Photo)
By Newsroom
Jul 9, 2024 2:18 PM

The recent imposition of a 40% additional tax on Chinese automotive brands by Türkiye has started to affect vehicle prices, with the first hike announced by Chery.

The company has increased its prices in Türkiye by an average of ₺100,000. Other Chinese brands are also expected to adjust their prices in the coming days.

Trade Ministry’s new tax on Chinese cars

The Ministry of Trade recently announced a 40% additional tax on the import of Chinese-origin vehicles.

However, firms that obtain an investment incentive certificate will be exempt from this tax. This regulation came into effect yesterday.

Chery announces ₺100,000 price increase

As the impact of the new tax is closely watched, Chinese firms have started to update their price lists. With the regulation now in force, Chery was the first to announce a price increase because of the tax.

According to Husamettin Yalcin, CEO of Cardata, Chery, the top-selling Chinese brand in Türkiye, raised its prices by an average of ₺100,000 as of yesterday.

Other brands expected to follow lead

Another Chinese brand, MG, has indicated on its website that its prices are being updated. Meanwhile, BYD, which recently announced plans to establish a factory in Türkiye, has maintained its old prices as of yesterday.

Other Chinese automotive brands like Woyah, Maxus, DFSK, Skywell and Leap Motor are expected to update their prices soon.

BYD’s major investment in Türkiye

In a significant development, BYD has decided to invest in Türkiye.

The agreement, signed yesterday, involves a $1 billion investment to establish a production facility with an annual capacity of 150,000 electric and rechargeable hybrid vehicles and a research and development center focused on sustainable mobility technologies.

The factory, expected to begin production by the end of 2026, aims to create up to 5,000 direct jobs.

Last Updated:  Jul 9, 2024 2:24 PM