The Contest of Chinese Brands in the Turkish Market – From Investment Stalemate to Deep Industry Chain Cooperation

In 2026, Turkey's automotive market is at the center of a multi-layered contest centered on technology-for-market access. Turkey's expectation for Chinese automakers is clear: market access in exchange for deeper investment, manufacturing, and technology support. However, Chinese manufacturers have yet to agree to any substantial technology transfer, leaving investment negotiations in deadlock. In the first quarter of 2026, Chinese brand market share in Turkey had contracted from 15 percent in 2024 to 5.82 percent, with the number of active Chinese brands dropping from ten to seven, and three operators having exited the market.

BYD's story is emblematic of this contest. In July 2024, BYD signed a $1 billion investment agreement with Turkey to build a 150,000-unit annual capacity new energy vehicle plant and R&D center in Manisa province, creating 5,000 jobs. In return, the Turkish government introduced import duty exemptions and waived the obligation for BYD dealers to establish 20 service points nationwide. However, due to the Manisa plant failing to commence construction, the Turkish government suspended BYD's import duty exemptions from early 2026, warning that if the investment was not completed, previously exempted duties would be reclaimed. BYD Vice President Li Ke stated that the company had suspended the Turkey plant project to focus on advancing European local manufacturing operations, with the project currently in a state of hiatus. Following the suspension of duty exemptions, BYD's sales in Turkey plummeted, selling only 152 units in May compared to 3,866 units in January.

However, the contest is not one-dimensional. China's new energy supply chain is deeply integrating into Turkey's industrial ecosystem through technology exports. In May 2026, CATL subsidiary CATL Intelligent reached a Panshi skateboard chassis mass production cooperation with Turkish domestic EV brand Togg, focusing on joint development of three models under Togg's new B-platform, with the first model scheduled for production in 2027. This marks the first cooperation project for an integrated intelligent chassis to supply overseas passenger vehicle markets. The former CEO of Renault Turkey noted that Togg sourced a complete rolling chassis (including chassis, steering system, wheels, and suspension) from CATL for its T6X model, with local value added not exceeding 30 percent. China's supply chain is bypassing the high tariff walls on complete vehicles by embedding itself into Turkey's industrial system through technology standard exports.

On July 28, 2026, the WTO formally ruled that Turkey's 40 percent additional tariff on Chinese electric vehicles and the import licensing system violated WTO rules. This ruling provides a legal foundation for Chinese brands to re-enter Turkey's new energy market. With tariff barriers dismantled, previously blocked plug-in hybrid and pure electric models are poised to regain market access.


FAQ

Question 1: How did Chinese brands perform in the Turkish market in the first quarter of 2026?

Chinese brand market share contracted from 15 percent in 2024 to 5.82 percent in the first quarter of 2026, with active Chinese brands dropping from ten to seven, and three operators having exited the market.

Question 2: Why did BYD's investment in Turkey stall?

BYD signed a $1 billion investment agreement in July 2024 to build a plant in Manisa. However, the plant failed to commence construction, and the Turkish government suspended import duty exemptions from early 2026. BYD Vice President Li Ke stated that the company had suspended the Turkey project to focus on European local manufacturing operations.

Question 3: How is China's new energy supply chain participating in Turkey's industrial ecosystem?

In May 2026, CATL subsidiary CATL Intelligent reached a Panshi skateboard chassis cooperation with Turkey's Togg, with the first model scheduled for production in 2027. This marks the first cooperation project for an integrated intelligent chassis to supply overseas passenger vehicle markets.

Question 4: What is the local value added situation for Togg?

The former CEO of Renault Turkey noted that Togg sourced a complete rolling chassis from CATL, with local value added not exceeding 30 percent. China's supply chain is bypassing tariff barriers through technology exports.

Question 5: How does the WTO ruling affect Chinese brands' return to Turkey?

On July 28, 2026, the WTO ruled that Turkey's 40 percent additional tariff on Chinese EVs violated WTO rules. This provides a legal foundation for Chinese brands to re-enter Turkey's new energy market, with previously blocked plug-in hybrids and pure EVs poised to regain access.


LHZ Auto Turkey Operations Center ｜ Website: www.lhzauto.com.tr ｜ Guangzhou Nansha: 15220000555 ｜ Khorgos: 19259087888 ｜ Email: china@lhzauto.com