Turkey is set for the era of electric vehicles (EVs), as original equipment manufacturers (OEMs) prepare for the launch of new EVs and the development of charging infrastructure gathers pace. Electric vehicle market growth in the country is mainly driven by reduced special consumption taxes (SCT) for electric vehicles as well as demand from global companies that are increasingly focusing on green policies.
New analysis from Frost & Sullivan finds that about 190 electric vehicles were sold in Turkey in 2012 and estimates this to reach 44,654 units in 2020 at a compound annual growth rate of 98.9 percent. Twelve OEMs are expected to launch their EV models in next five years. 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.
“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 Cakmak. “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.”
Unfortunately, incentives limited to the reduction of SCT are not enough to create awareness and boost large-scale EV uptake. It will take a few years for customers to change their daily commuting habits and opt for EVs over traditional vehicles. Infrastructure expansion and operational changes are necessary, too.
“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 Cakmak. “Government and OEMs in the country should work together to provide added incentives as well as charging stations to promote EVs.”
After 2015, the market in the country will boom as used fleet EVs are made available to private customers.