The EU's new industrial law and 55% localization rule are turning Turkey into a critical gateway for Chinese electric vehicle giants to enter Europe.
As the global automotive industry shifts from internal combustion engines to electric mobility (EV), it is not only experiencing a technological revolution but also a massive intercontinental trade war. On one side, the European Union (EU) with its century-old automotive heritage but sluggish in the electric vehicle transition; on the other, Chinese manufacturers dominating the world with state incentives, massive production capacities, and unmatched battery technologies... Europe is preparing to raise its customs barriers to unprecedented levels by 2026 to protect its market from the Chinese invasion. However, in the midst of this trade war, Turkey stands with its Customs Union agreement and unique geographical location. The EU's "Industrial Acceleration Act" and the "Backdoor" strategy established by Chinese brands through Turkey have the potential to make our country one of the world's largest electric vehicle assembly and production hubs. So, how will the cards be dealt in this new era, and where do we stand as consumers in this storm?
The additional taxes imposed by the EU, investments by Chinese brands in Turkey, and constantly changing customs regulations... All these macroeconomic events directly affect your vehicle purchase decision, whether individually or corporately. Imagine; you purchased an electric vehicle from the Far East for millions of liras. If a new customs law halts spare part supply tomorrow or the brand decides to withdraw from the Turkey/Europe market, your multi-million lira investment could suddenly become worthless. Uncertainties in second-hand value and revolutionary innovations in battery technology every month are additional concerns.
In this global chaos and uncertainty, financially savvy individuals and companies are turning to the Operational Leasing model instead of taking risks. When you choose LenaCars' extensive and up-to-date electric vehicle fleet, international tax wars, brand production strategies, spare part availability, or second-hand value losses are no longer your concern. You simply select your vehicle, enjoy the technological revolution, and transfer all risks to LenaCars' strong financial infrastructure and expert fleet managers. Is there a new battery technology? Or has the brand you use become obsolete? At the end of your leasing period, upgrading to the latest technology is just a signature away.
The European Union painfully realized that its giants like Volkswagen, Stellantis, and Renault cannot compete on price against their Chinese rivals (BYD, MG, Chery, etc.). An electric vehicle produced in China can be manufactured 30% cheaper than one produced in Europe. To prevent this unfair competition, the EU Commission imposed additional customs duties of up to 38% on Chinese-origin vehicles. However, the real big move was the tightening of "Rules of Origin."
According to this, for an electric vehicle to be considered "European Made" and sold to EU countries with zero customs duty, at least 55% of the vehicle's total value must be produced in Europe (or in Turkey due to the Customs Union agreement).
This is where the system gets stuck: The Battery Problem.
Chinese brands know that directly entering the European market is no longer profitable. Even if they try to establish factories in countries like Hungary and Poland, Europe's high labor costs, union barriers, and heavy bureaucracy slow things down. At this point, Turkey emerges as a savior angel (or Trojan Horse).
Thanks to Turkey's Customs Union Agreement with the EU, industrial products manufactured or sufficiently assembled in Turkey can enter Europe with zero customs. Additionally, Turkey's tremendous experience in the automotive supply industry (supply chain), skilled and more cost-effective labor force compared to Europe, and logistical advantages are unmatched opportunities for Chinese giants. BYD's massive $1 billion investment in Manisa is just the first step of this strategy.
If importing the entire battery from China disrupts the localization rate, brands apply the following formula:
Turkey is currently on the brink of a historic opportunity. If we allow Chinese giants to use our country merely as a "screwdriver factory" (an assembly hub where parts are only put together) just to bypass customs barriers, we may gain employment in the short term but fail to create technological added value in the long term.
However, if we multiply initiatives like the TOGG & Farasis partnership's Siro Battery investment or the Ford-LG-Koç Holding's battery factory project in Ankara, the game changes entirely. If we succeed in attracting not only the package but also the "Cell" production, the heart of the battery, to Turkey, our country will not only be Europe's backdoor but one of the world's largest and indispensable Technology Hubs in electric mobility, autonomous driving, and energy storage. The legal process and incentive policies over the next 2-3 years will determine the fate of the Turkish automotive industry for the next 50 years.
With international tax laws changing daily, battery technologies renewing monthly, and vehicle prices drifting into uncertainty amidst the China-Europe war; do you want to tie up millions of liras in a metal heap? Leave the concerns of technological obsolescence, spare part availability, and second-hand value depreciation entirely to the professionals at LenaCars. Access the latest electric vehicles in the most rational way, without any financial risk, with full maintenance and insurance assurance through long-term leasing.
Explore Our Electric Vehicle Fleet → 📞 Contact an Expert Fleet Consultant10 dk
7 dk
12 dk
The EU's new industrial law and 55% localization rule are turning Turkey into a critical gateway for Chinese electric vehicle giants to enter Europe.
As the global automotive industry shifts from internal combustion engines to electric mobility (EV), it is not only experiencing a technological revolution but also a massive intercontinental trade war. On one side, the European Union (EU) with its century-old automotive heritage but sluggish in the electric vehicle transition; on the other, Chinese manufacturers dominating the world with state incentives, massive production capacities, and unmatched battery technologies... Europe is preparing to raise its customs barriers to unprecedented levels by 2026 to protect its market from the Chinese invasion. However, in the midst of this trade war, Turkey stands with its Customs Union agreement and unique geographical location. The EU's "Industrial Acceleration Act" and the "Backdoor" strategy established by Chinese brands through Turkey have the potential to make our country one of the world's largest electric vehicle assembly and production hubs. So, how will the cards be dealt in this new era, and where do we stand as consumers in this storm?
The additional taxes imposed by the EU, investments by Chinese brands in Turkey, and constantly changing customs regulations... All these macroeconomic events directly affect your vehicle purchase decision, whether individually or corporately. Imagine; you purchased an electric vehicle from the Far East for millions of liras. If a new customs law halts spare part supply tomorrow or the brand decides to withdraw from the Turkey/Europe market, your multi-million lira investment could suddenly become worthless. Uncertainties in second-hand value and revolutionary innovations in battery technology every month are additional concerns.
In this global chaos and uncertainty, financially savvy individuals and companies are turning to the Operational Leasing model instead of taking risks. When you choose LenaCars' extensive and up-to-date electric vehicle fleet, international tax wars, brand production strategies, spare part availability, or second-hand value losses are no longer your concern. You simply select your vehicle, enjoy the technological revolution, and transfer all risks to LenaCars' strong financial infrastructure and expert fleet managers. Is there a new battery technology? Or has the brand you use become obsolete? At the end of your leasing period, upgrading to the latest technology is just a signature away.
The European Union painfully realized that its giants like Volkswagen, Stellantis, and Renault cannot compete on price against their Chinese rivals (BYD, MG, Chery, etc.). An electric vehicle produced in China can be manufactured 30% cheaper than one produced in Europe. To prevent this unfair competition, the EU Commission imposed additional customs duties of up to 38% on Chinese-origin vehicles. However, the real big move was the tightening of "Rules of Origin."
According to this, for an electric vehicle to be considered "European Made" and sold to EU countries with zero customs duty, at least 55% of the vehicle's total value must be produced in Europe (or in Turkey due to the Customs Union agreement).
This is where the system gets stuck: The Battery Problem.
Chinese brands know that directly entering the European market is no longer profitable. Even if they try to establish factories in countries like Hungary and Poland, Europe's high labor costs, union barriers, and heavy bureaucracy slow things down. At this point, Turkey emerges as a savior angel (or Trojan Horse).
Thanks to Turkey's Customs Union Agreement with the EU, industrial products manufactured or sufficiently assembled in Turkey can enter Europe with zero customs. Additionally, Turkey's tremendous experience in the automotive supply industry (supply chain), skilled and more cost-effective labor force compared to Europe, and logistical advantages are unmatched opportunities for Chinese giants. BYD's massive $1 billion investment in Manisa is just the first step of this strategy.
If importing the entire battery from China disrupts the localization rate, brands apply the following formula:
Turkey is currently on the brink of a historic opportunity. If we allow Chinese giants to use our country merely as a "screwdriver factory" (an assembly hub where parts are only put together) just to bypass customs barriers, we may gain employment in the short term but fail to create technological added value in the long term.
However, if we multiply initiatives like the TOGG & Farasis partnership's Siro Battery investment or the Ford-LG-Koç Holding's battery factory project in Ankara, the game changes entirely. If we succeed in attracting not only the package but also the "Cell" production, the heart of the battery, to Turkey, our country will not only be Europe's backdoor but one of the world's largest and indispensable Technology Hubs in electric mobility, autonomous driving, and energy storage. The legal process and incentive policies over the next 2-3 years will determine the fate of the Turkish automotive industry for the next 50 years.
With international tax laws changing daily, battery technologies renewing monthly, and vehicle prices drifting into uncertainty amidst the China-Europe war; do you want to tie up millions of liras in a metal heap? Leave the concerns of technological obsolescence, spare part availability, and second-hand value depreciation entirely to the professionals at LenaCars. Access the latest electric vehicles in the most rational way, without any financial risk, with full maintenance and insurance assurance through long-term leasing.
Explore Our Electric Vehicle Fleet → 📞 Contact an Expert Fleet Consultant10 dk
7 dk
12 dk
Ücretsiz filo analizi ile tasarruf fırsatlarını keşfedin.
Türkiye'nin en geniş araç filosu ile güvenli ve konforlu yolculuklar.
Ücretsiz filo analizi ile tasarruf fırsatlarını keşfedin.
Türkiye'nin en geniş araç filosu ile güvenli ve konforlu yolculuklar.