Carmakers adjust their EVs to boost sales in Turkish market

ISTANBUL

Major foreign carmakers are adjusting engine power and equipment to take advantage of the lower special consumption tax (SCT) applied to EVs.

EVs with an engine power not exceeding 160 kW and a tax base below 1.45 million Turkish Liras are subject to the 10 percent SCT, while the tax rate for gasoline and diesel-powered cars is at least 80 percent.

Brands that sell the fossil fuel-powered version of the same vehicle, with SCT rates reaching 150 percent, intentionally lower the power of their electric versions specifically for Türkiye.

By doing so, they qualify for the 40 percent or 60 percent SCT brackets, gaining significant advantages in pricing and market competitiveness.

This tax advantage has led to a rapid increase in the number of brands redesigning their electric vehicle models specifically for Türkiye over the past year.

Some have adjusted engine power, while others have tweaked equipment levels to qualify for the 10 percent SCT bracket. Following BMW, Mercedes-Benz, Tesla, Hyundai and Volvo, Chinese carmaker BYD has followed suit.

The Chinese carmaker has adjusted its sedan model, Seal, for Türkiye by modifying its electric motor to fit the 10 percent SCT bracket. As a result, its price has dropped from 3 million liras to 1.93 million liras.

With this move, BYD’s Seal model joins the competition in the 10 percent SCT category, alongside Togg T10X, Tesla Model Y SR, MINI Countryman E and KIA EV3, intensifying the race among affordable luxury EVs in Türkiye.