The Turkish electric vehicle market has experienced significant expansion over the last few years, emerging as a prominent player in the global electric vehicle (EV) landscape. Their remarkable acceleration in EV adoption, spurred by preferential vehicle registration policies and a boom in domestic manufacturing capabilities, has resulted in substantial market growth. Following an unprecedented 805% increase in EV sales between 2022 and 2023, this upward trend continued last year, signaling a maturing and increasingly robust market.
Targeted policies fuel rapid market growth, reaching 10% sales share
Between 2022 and 2023, Türkiye witnessed a notable increase in EV market share from 1% to 6%, and by 2024, this growth continued by reaching double digits with an impressive 10% EV sales share – a notable increase year-over-year. Battery electric vehicles are overwhelmingly favored by Turkish consumers, representing over 90% of all EV sales in 2024. These impressive sales numbers offer concrete evidence of increasing consumer acceptance and market penetration of EVs across the nation.
Several key catalysts have fueled this market expansion, including strong domestic EV production across the sector. In particular, the introduction of Türkiye’s first domestically produced battery-electric vehicle by TOGG has generated remarkable consumer enthusiasm. Governmental policies designed to incentivize EV adoption have also played a crucial role. These policies, particularly impactful in a market with a history of high vehicle taxation, include preferential vehicle registration tax rates and exemptions from Value Added Tax (VAT). Financial incentives such as these effectively improve the total cost of ownership for EVs, enhancing their competitiveness against gasoline-powered vehicles and stimulating consumer demand.
Domestic manufacturing and global partnerships take center stage
Türkiye’s approach to fostering EV market growth extends beyond demand-side incentives to encompass a comprehensive framework focused on building a robust domestic EV ecosystem. The government has implemented a multi-faceted strategy, prioritizing both policy support and substantial investment in domestic manufacturing capacity.
Türkiye’s Climate Change Mitigation Strategy and Action Plan underscores this commitment by envisioning 35% of EVs being domestically produced by 2040, with an impressive 75% of their components also sourced locally. This demonstrates a strong push for national self-sufficiency in EV manufacturing. Their signature to the ZEV Declaration, pledging 100% ZEV sales of new cars and vans by 2040, further underscores their commitment to an electric transition.
To support these plans, they’ve announced significant financial allocations, with USD $5 billion earmarked for EV production and USD $4.5 billion for battery manufacturing initiatives. These incentives are strategically designed to establish a vertically integrated EV industry within Türkiye, reducing import dependence and fostering long-term economic development within the sector.
As the national electric vehicle manufacturer, TOGG is central to the country’s electric strategy. The automaker’s assembly plant began production in Gemlik in 2022, launching the C-segment SUV. Representing Türkiye’s first comprehensive effort to develop and manufacture a high-quality electric car, TOGG aims not only to meet domestic demand but also compete in international markets. They have received substantial governmental support, encompassing financial incentives, streamlined regulatory processes, and guaranteed procurement for public sector fleets.
Furthermore, the federal government is strategically positioning itself within the international EV value chain as well. The announced development of a USD $1 billion assembly plant by BYD, with a projected annual capacity of 150,000 vehicles by 2026, exemplifies this strategic direction. Similarly, Ford’s and Hyundai’s ongoing investments in their Türkiye-based manufacturing operations solidify the nation’s appeal as a regional EV production and sales hub. The strategic benefit of such investments extends beyond manufacturing; it catalyzes the growth of local component suppliers, creates a highly skilled EV workforce, and spurs innovation through competition. This in turn will strengthen the entire domestic automative sector for companies like TOGG and others.
An emerging market leading the EV charge
Türkiye’s ongoing progress in the EV transition provides a compelling model for other emerging economies seeking to accelerate the transition to zero-emission transportation. By strategically deploying demand-side initiatives with comprehensive policies supporting domestic production and international collaborations, Türkiye is demonstrating the potential for rapid EV market transformation. While projections anticipate a substantial increase to over 2.5 million EVs on Turkish roads by 2030, current sales figures indicate potentially exceeding even these forecasts. Türkiye’s trajectory will be closely observed as a valuable example for achieving accelerated ZEV transitions on a global scale.
Cover Photo: Evening traffic over the Bosphorus Bridge in Istanbul, Türkiye; via Shutterstock.
