Will the Turkish electric car market maintain momentum?

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Turkey’s electric vehicle industry has seen surprising growth in 2025. The country has overtaken Belgium to become the fourth-largest selling passenger battery electric vehicle (BEV) market in Europe for the first six months of this year, behind only the far-larger markets of Germany, the UK and France.

Whether this momentum is sustainable, however, is unclear. Recent changes by the Turkish government to the Özel Tüketim Vergisi (ÖTV; special consumption tax) — which offers preferential rates for electric car sales in Turkey — may hinder future growth. 

In the past few years, Turkey has become a surprising addition to the list of Europe’s biggest markets for battery electric cars. June 2025 data released by the country’s Automotive Distributors’ and Mobility Association (Otomotiv Distribütörleri ve Mobilite Derneği [ODMD]) showed that electric car sales in Turkey more than tripled that month to 25,646 units, up from only 8,032 units in June 2024.

Additionally, BEVs represented around 27.4% of all passenger car sales in Turkey in June. This strong performance helped  BEV sales more than double in the first half of 2025 compared to the same period in 2024, rising from 35,636 to 85,894 units. 

Several factors have supported BEV demand in Turkey, including the ÖTV rates. Favorable ÖTV rates, particularly for BEVs with electric motor power of 160 kW or less, have played a central role in accelerating adoption.

The special tax rates were implemented to coincide with the launch of local BEV startup Togg’s first car, the T10X crossover, in 2023. However, other automakers have also taken advantage.

Until July 2025, BEVs with a motor output of 160 kW or less were subject to a reduced 10% ÖTV rate depending on a price threshold that grew over time to reflect inflation in the country, while those priced above that threshold faced a 40% ÖTV rate. This was significantly lower than the ÖTV of around 80% applied to internal combustion engine (ICE) passenger cars with engine sizes under 1,600 cubic centimetres.

In the lead up to July 2025, the Turkish electric car market saw a surge in sales in June, driven by three key factors:

1. Customers seeing reports of possible changes to the ÖTV rates in the media pulled forward potential purchases to take advantage of the lower tax rates.
   
   
2. Tesla launched its Model Y RWD (160 kW) variant, which strategically stayed below the price cutoff to qualify for the then-10% rate. This helped Tesla have a bumper sales month, especially in the entry-level BEV segment.
   
   
3. Togg’s T10X continued to see solid domestic sales, despite the gains seen by foreign-made products.

The result: In June 2025, sales of electric cars in Turkey with 160 kW or less surged 233.6% year-over-year to 17,667 units. For the first half of the year, sales in this category reached 67,855 units, a 104.3% increase compared to the same period in 2024.

Higher-powered electric cars also saw strong gains. Sales of models with electric motor outputs above 160 kW rose 168.5% in June, to 8,161 units, and increased 191.3% year-over-year in H1, reaching 18,039 units. Despite higher ÖTV rates—50% to 60%, depending on price—these vehicles remained competitive compared to ICE cars with engines over 1,600 cubic centimeters, which face ÖTV rates between 130% and 220%.

Hybrid vehicles, while sometimes eligible for reduced tax rates, still fall into an ÖTV range of 45% to 220%, making them generally less tax-efficient than BEVs under current rules.

At the same time, the Turkish government has acted to curb an influx of Chinese-made BEVs, introducing tariff and non-tariff barriers. However, exemptions are granted to automakers that commit to local production investments — a strategy that benefited BYD, which recently announced plans to build a manufacturing facility in Turkey.

In the wake of the strong BEV growth in June, a new ÖTV rate structure was finally announced in Turkey’s Official Gazette during late July. This has seen the 10% ÖTV rate abolished and replaced with a 25% rate for qualifying BEVs priced up to 1.65 million Turkish Lira. Vehicles above that threshold now face 55%, 65%, or 75% ÖTV, depending on power output and pricing. At the same time, the ÖTV rate structure has also been changed for some ICEs and PHEVs.

However, ÖTV rates are not the only factor that has helped boost the Turkish electric car market. Other government measures have also helped to encourage BEV ownership. These include lower Motorlu Taşıtlar Vergisi (MTV; motor vehicle ownership tax) and benefits for battery electric company cars. Locally built BEVs are also said to qualify for additional corporate tax reductions.

Additionally, regulations that support the expansion of an EV charging network have helped to encourage BEV uptake in Turkey. Infrastructure has expanded from 6500 chargers as of the end of March 2023 to 31,433 chargers at the end of June 2025, according to the most recent data published by the Energy Market Regulatory Authority (EPDK).