New Import Tax Shake-Up Set to Reshape Turkey’s Auto Market

As year-end discount expectations build in the automotive sector, a significant regulatory shift is about to take effect in Turkey, fundamentally altering the country’s vehicle import dynamics. The additional customs tax, first announced in September and granted a two-month grace period to avoid sales disruptions, will officially take effect on November 22, 2025.

The regulation introduces steep extra taxes on vehicles imported from countries without a Free Trade Agreement or Customs Union arrangement with Turkey. This shift aims to redirect imports toward partner countries while protecting domestic production.

New Tariff Structure: 30 Percent Tax and Minimum Dollar Threshold

The new rule adds substantial extra taxes on top of the existing 10 percent customs duty. The rate varies by engine type and drivetrain, and it also includes a minimum dollar amount per vehicle.

Vehicle Type | Extra Tax | Minimum Charge
ICE and HEV | +25 percent | 6,000 dollars
PHEV | +30 percent | 7,000 dollars
BEV | +30 percent | 8,500 dollars

The change is expected to significantly raise consumer prices because these taxes increase the taxable base used to calculate the Special Consumption Tax and VAT.

Japanese Brands Most Affected

Although Toyota and Honda are highly regarded in Turkey for reliability, their imported models essentially arrive from non-EU countries. This makes them among the most affected by the new tariff.

Honda: Almost its entire lineup, including Civic, Jazz, CR-V, and HR-V, will face higher pricing.

Toyota: Locally produced Corolla and C-HR remain unaffected, as does the EU-built Yaris. However, imported models such as the Corolla Cross, RAV4, and Land Cruiser Prado will see substantial price increases.

Lexus: Every Lexus model in Turkey, including the LBX, NX, RX, and LM, is subject to the new tariff.

Others: Nissan’s X-Trail and Subaru’s Forester and Crosstrek will also face notable hikes.

In short, brands relying on Japanese, Thai, Mexican, or South African production plants will be directly hit, diminishing the competitiveness of many popular SUV and crossover models.

How the New Tax Will Inflate Prices

The additional tax not only raises the base value of vehicles but also multiplies through Turkey’s tax system. Because the extra customs tax is added before the Special Consumption Tax and VAT, the price increase compounds.

For example, a vehicle with a pre-tax price of 1 million TL becomes 1.25 million TL when a 25 percent extra tax is applied. Once SCT and VAT are calculated on this new amount, the final consumer price can rise by as much as 540,000 TL. Vehicles with higher SCT brackets will experience even greater proportional increases.

This cascading effect means that certain SUVs or electrified models could become 500,000 TL or more expensive overnight.

Which Countries Are Affected?

According to automotive journalist Emre Özpeynirci, the 25 percent additional customs duty applies only to vehicles imported from countries that do not have a Customs Union or Free Trade Agreement with Turkey.

Affected countries include:
• Japan
• Mexico
• South Africa
• Thailand
• Other non-FTA regions

A crucial detail is that many of these countries already face high import barriers, so their presence in the Turkish market is minimal. This means the tax does not affect vehicles that are already rare or absent in the local market.

EU and South Korean Models Remain Safe

Popular brands such as Volkswagen, Renault, Fiat, Toyota’s locally manufactured models, Hyundai, and many others remain wholly exempt from the new tariff.

Cars imported from the European Union are protected by the Customs Union, while South Korean models are covered under the Turkey–South Korea Free Trade Agreement.

Vehicles like the BMW X3, Audi Q5, Volkswagen Polo, and Toyota Corolla are not expected to see any price increase related to the November 22 regulation. Industry experts warn consumers to be wary of artificial demand fueled by unfounded expectations of a broad price spike.

Import Strategies Will Shift

The tariff is expected to force significant strategic adjustments for brands relying on non-FTA manufacturing plants. Industry analysts foresee two significant responses:

1. Shifting Imports to Europe: Brands will try to reroute supply chains and import vehicles from EU or FTA partner factories rather than Asian or African plants.

2. Absorbing Part of the Cost: Some distributors may partially offset the tax increase through margin reductions to remain competitive.

Since some models may cost up to 500,000 TL more than similar alternatives, brands will need fast, aggressive strategies to avoid losing market share.