Sales of passenger cars and light commercial vehicles in Turkey increased by 13% in August this year compared to the same month last year and now exceed 100,000 units.
The electric vehicle (EV) segment has had a share of over 20% for the third consecutive month, writes Daily Sabah.
Demand remains strong despite high borrowing costs as authorities maintain a strict policy to cool demand, the main driver of inflation, and an adjustment of the special consumption tax (ÖTV) at the end of July.
According to data published by the Automobile Distributors and Mobility Association (ODMD), total sales increased by 12.8% year-on-year in August to 101,650 units. Passenger car sales jumped 18.7% to 82,215 units, while light commercial vehicle sales fell 6.8% to 19,435 units.
Sales of electric vehicles more than doubled compared to August last year, reaching 17,480 units. Electric vehicles account for 21.3% of the market, up 13.1 percentage points from the same month in 2024.
Among manufacturers producing only electric vehicles, Turkish manufacturer Togg recorded 1,249 units sold in August, more than double its sales compared to the same month last year. However, this remains below the company's average monthly output of around 2,600 units this year.
Since the beginning of the year, cumulative sales of Togg's C-SUV T10X have reached 21,070 units, up nearly 42% compared to the previous year.
Tesla becomes the No. 2 brand
Tesla has reached the second place ahead of its traditional European and Japanese rivals as the American brand takes advantage of buyers seeking tax breaks and currency hedging.
The electric car maker sold 8,730 Model Ys, up 86% from the previous month, in sharp contrast to a decline in sales in some parts of Europe amid fierce competition from China's BYD and a negative reaction against CEO Elon Musk.
Tesla's sales, which a record for the company in Turkey, trailing only Renault and surpassing local bestsellers Fiat, Volkswagen, Toyota and Hyundai, according to ODMD.
Tesla accounted for 50% of all electric vehicles sold in August, according to data from industry consultancy EBS Danışmanlık. BYD trails Tesla by 1,639 units, with Togg in third place.
The jump in August partly reflects erratic distributions from Tesla's German manufacturing plant. In March and April, for example, the company sold only about 100 units in Turkey before jumping to over 4,000 units in June and July, accounting for about a third of all electric vehicle sales.
Turkish buyers increasingly want only electric vehicles due to lower tax rates.
Tesla’s base Model Y, the only one available in Turkey, is taxed in the country’s lowest tax bracket, significantly lower than conventional combustion engine cars, even after the tax increase in late July.
Turkey’s complex vehicle tax system includes a special consumption tax and a value-added tax. The combined rate ranges from 50% to 284%.
Tesla’s sales in the January-August period more than quadrupled from the previous period to about 26,000 units. Togg was the second best-selling electric vehicle brand.
Electric and hybrid vehicles combined accounted for 44.4% of the market in August.
Market nears 1.3 million threshold
On a 12-month cumulative basis, an indicator that smooths out monthly fluctuations, passenger car and light commercial vehicle sales increased by almost 5% to nearly 1.3 million units, a historic high.
Before 2023, the market struggled to surpass the 1 million mark. In 2024, it reached a record 1.24 million units.
Over the past 12 months, cumulative sales of electric vehicles exceeded 170,000 units, while combined sales of electric and hybrid vehicles reached approximately 430,000 units, accounting for 41.9% of the market.