The main driving force behind the increase in 2023 was the launch of two new electric vehicle brands that entered the Turkish market for the first time at that time. One of these two brands, which still have the best-selling electric vehicles in the country, is a domestically produced electric car brand manufactured in Türkiye. After 2023, the acceleration in electric vehicle sales occurred as electric vehicle brands adapted to the taxation system applied in Türkiye.
In addition to value-added tax (KDV), Türkiye applies a Special Consumption Tax (ÖTV) on cars, depending on the vehicle’s base price and engine power. BEVs with motors under 160 kW and below a certain price threshold are subject to the lowest tax bracket, while vehicles exceeding these limits face sharply higher tax rates.
From 2023 until July 2025, the lowest ÖTV rate for electric vehicles was 10%, while non-qualifying vehicles were taxed between 40% and 60%. As manufacturers introduced models compatible with the 10% bracket, electric vehicle sales accelerated in 2024 and 2025.
After July 2025, the lowest ÖTV rate increased to 25%, and other rates rose to between 55% and 75%. Despite this, electric vehicle sales did not decline in the remaining months of 2025. By contrast, fossil fuel and hybrid vehicles face ÖTV rates between 70% and 220%, depending on price and engine size.
In addition to these taxes, Türkiye applies high additional tariffs on all imported cars from countries with which it does not have free trade agreements, such as China.
Gasoline consumption and crude oil imports on the rise
In 2025, Türkiye became one of Europe’s standout countries in electric vehicle sales, and the accelerating growth in electric vehicle sales since 2023 has contributed to a decline in fossil fuel car sales in the country. However, as of the end of 2025, BEVs account for only 2.1% of registered cars in Türkiye.
Electric vehicle sales have not yet increased enough to significantly reduce energy imports. Over the first 11 months of 2025, gasoline consumption increased by 16% compared to the same period in 2024. Despite rising domestic oil production, crude oil imports increased by 5.3% year-on-year over the same period.
In the electricity sector, there are currently no fossil fuel power plants under construction in Türkiye. All new power plants commissioned in 2025 were renewable energy facilities. Türkiye’s plan to triple its wind and solar capacity, which has reached 40 GW, by 2035 will enable rising electricity demand to be met with domestic and clean energy sources. Therefore, the transition to electric vehicles in transport will also strengthen Türkiye’s energy independence.
Although the tax rates applied to electric cars that meet certain criteria are lower than those for other electric vehicles, the overall tax burden remains high. The total tax applied to electric cars in the lowest tax bracket reaches 50% when VAT is included. For electric vehicles that move into the higher tax bracket due to price, despite having low engine power, the total tax rate rises to 86%. As exchange rates increase, more electric vehicles fall into higher tax brackets, while the number of affordable and high-performance electric car options in the market is declining.
Türkiye still has very high potential to reduce energy imports. Achieving this will be possible by developing more favourable taxation systems for electric vehicles.
