Chinese automakers’ sales and market share decline in Türkiye

Taylan Özgür Dil-ISTANBUL

This photo shows BYD electric cars waiting to be loaded to an automobile carrier in the Taicang Port in Suzhou, China's eastern Jiangsu province.(Photo by CN-STR / AFP)

Sales of Chinese automotive giants in the Turkish market fell by 12.8 percent in the first quarter of 2026, with their market share dropping to 5.82 percent.

The number of Chinese brands in the market also decreased to seven after three players exited. Yet this downturn is not solely a sales story. A lack of willingness among Chinese manufacturers to share technology has created an investment deadlock, which, combined with new customs measures, has begun to weigh on the automotive sector.

Chinese automakers’ performance in Türkiye has fluctuated in line with shifting trade dynamics between the two countries. After their market share approached 15 percent in 2024, the first quarter of 2026 marked a contraction. The decline cannot be explained by sales alone. Türkiye’s updated customs standards, the effective removal of incentives for plug-in hybrid (PHEV) vehicles, and ongoing investment processes emerged as key factors behind the slowdown.

According to data from the Automotive Distributors and Mobility Association (ODMD), Chinese brands sold 15,443 vehicles in Türkiye between January and March 2026, down 12.8 percent compared to the same period last year. Their overall market share fell by 0.59 points to 5.82 percent.

Customs regulations played a decisive role in performance. Chery Group, with its Chery, Omoda and Jaecoo brands, benefited from a reduced customs tax burden of 35 percent and achieved 8,454 sales in the quarter. BYD, however, faced a 25.4 percent drop to 6,127 units, hindered by investment disputes and the inability to import PHEV models. MG managed to boost sales by 7.8 percent with its internal combustion lineup, while DFSK, Skywell and Leapmotor exited the market.

The results highlight that Chinese brands offering internal combustion models are gaining an edge, while BYD, relying solely on electric vehicles, is struggling to compete. This situation also exposes a contradiction in Türkiye’s strategy: While aiming to attract investment and encourage an electric transition, the market is rewarding conventional engine offerings.

Türkiye’s core expectation from Chinese automakers remains clear: Access to the market in exchange for deeper cooperation in investment, production and technology.

Yet no concrete progress has been achieved so far. While the investment agreement with BYD, the battery partnership with Farasis, and potential collaborations with Chery and Geely indicate that this pursuit is ongoing, Chinese manufacturers have yet to take any concrete steps toward technology sharing.

The trajectory of 2026 will depend on Türkiye’s persistence, Europe’s evolving industrial policies, and the stance of Chinese automakers toward deeper collaboration.