Tax decision that upends car prices! Some will drop by 500,000, while others will be a wallet-buster.

Tax decision that upends car prices! Some will drop by 500,000, while others will be a wallet-buster.

22.09.2025 16:40

Turkey has introduced new tax regulations in the automotive sector. According to the decision published in the Official Gazette, an additional tax has been imposed on cars imported from China, while the 60% additional tax applied to cars imported from the United States has been removed. The decision regarding China will increase the prices of Honda and Toyota vehicles, while on the U.S. side, it is expected to lower the price of the Tesla Model S by around 570,000.

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A new decision that will shake up the automotive market has been published in the Official Gazette. Turkey has imposed new additional customs duties on cars imported from China while lifting the 60% additional tax that has been applied to vehicles from the USA for years.

ADDITIONAL TAX ON VEHICLES FROM CHINA

In the last two years, continuously increasing additional taxes have targeted Chinese brands again. In 2023, a 40% additional tax was imposed on electric vehicles. This rate was expanded to all fuel types in 2024. Since the beginning of the year, a 50% additional tax has been applied to internal combustion engine vehicles from China, while a 40% additional tax has been applied to electric and hybrid vehicles. The new regulation announced today means that "additional financial obligations" will be imposed on these rates. In other words, taxes on vehicles imported from China will increase exponentially.

Accordingly, a 25% or at least $6,000 additional tax will be applied to conventional and hybrid (excluding plug-in) cars, a 30% or at least $7,000 additional tax to plug-in hybrids, and a 30% or at least $8,500 additional tax to electric vehicles.

BRANDS AFFECTED BY THE TAX INCREASE

It is expected that the additional tax applications imposed on car imports will directly affect vehicles of Japanese origin. With the increase in tax rates, especially for hybrid and electric models, there is a possibility of price increases. It is anticipated that the list prices of models such as Honda, Toyota, Subaru, and Nissan, which are popular in Turkey, will rise.

60% TAX REDUCTION ON US-MADE VEHICLES

The 60% additional customs duty that has been in effect since 2018 is now history. Thus, the way has been opened for American-made cars to return to the Turkish market. It is discussed that models produced by German brands in the USA, which have not been brought to Turkey for a long time, may return.

BMW's SUV models produced in the USA, Jeep's products that have not been in Turkey for a long time, and some models of Volvo are expected to be reintroduced for sale.

TESLA HAS ADVANTAGES OF UP TO 500,000 TL

The tax-free price of the Tesla Model S is 1,254,901 TL. The vehicle was subject to a customs duty of 70% (10% + 60%) under the previous application. The total import price, including customs duty, special consumption tax (ÖTV), and VAT, reached 3,199,997 TL. With the new regulation, the tax on electric vehicles imported from the USA has been reduced to 40% (10% + 30%). After this update, the customs duty, including ÖTV and VAT, for the Tesla Model S has decreased to 2,635,292 TL. Thus, the price advantage has become 564,705 TL. The Tesla Model Y is not included in this tax scope because it is produced in Germany and Turkey has a customs union agreement with EU countries.

PRICE IMPACT IN 60 DAYS

The new decision will come into effect 60 days after its publication date in the Official Gazette. This period has been granted to facilitate the transition for vehicles for which import procedures have already begun.

THE SECTOR IS IN SHOCK

Ali Haydar Bozkurt, President of the Automotive Distributors and Mobility Association (ODMD), stated that the decisions have created significant uncertainty in the sector.

Bozkurt said, "The automotive sector inherently requires long-term forecasting, preparation, and timing of orders. However, such regulations implemented suddenly make predictability difficult." He pointed out that the 60-day adaptation period is also insufficient, stating:

"At least three months are needed to revise orders and redo production and logistics plans. Brands operate production and distribution based on pre-determined quotas in the global market. Constantly changing tax systems challenge the trade and competitiveness of brands that are part of the global automotive sector," he evaluated.



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