Turkish EV take-up to grow thanks to strong government support
That’s the finding of ‘Analysis of the Electric Vehicle Market in Turkey – An Update’ by Frost & Sullivan.
The research finds that approximately 190 EVs were sold in Turkey in 2012, which is estimated this to grow to 44,654 units in 2020 at a compound annual growth rate of 98.9%.
Frost & Sullivan adds that the government support will be a key driver for EVs, due to the reduced special consumption taxes (SCT)on such vehicles.
‘The anticipated implementation of the carbon emission-based taxation system will further encourage the adoption of EVs in Turkey,’ noted Frost & Sullivan automotive and transportation research analyst Hikmet Çakmak. ‘The government collects a high amount of SCT on the purchase of cars based on engine sizes, and the reduction of SCT for EVs is a positive step encouraging the adoption of EVs in the country.’
In addition, increased model offerings will also help stimulate market growth – 12 OEMs are expected to launch their EV models in next five years.
Frost & Sullivan also noted that charging infrastructure expansion is also necessary. In terms of public charging stations, the country had 160 in 2012 and 120,000 more are expected to be installed by 2020.
Smart grid investments in the electricity distribution network will allow for easier integration of EVs to the grid and widen the potential for EV sales. Turkey also has separate tariff schemes for electricity usage during the day and night, thereby enabling the low-cost charging of EVs at night.
‘Gen–Y consumers that are open to new, green mobility solutions and companies with global eco-initiatives are key target segments for vehicle manufacturers in Turkey,’ observed Mr Çakmak. ‘Government and OEMs in the country should work together to provide added incentives as well as charging stations to promote EVs.’
The company added that after 2015, the market in the country will boom as used fleet EVs are made available to private customers.For more of the latest industry news, click here.