Published on and written by Cyril Jarnias
Facing the climate emergency and the need for ecological transitions, Turkey is committing to a more sustainable future by developing its electric vehicle infrastructure and encouraging adoption through various subsidies and incentive programs.
This significant movement aims to reduce dependence on fossil fuels and decrease carbon footprint while promoting technological innovation across the territory.
In this article, we examine ongoing government initiatives, opportunities available to consumers, and remaining challenges to transform Turkey’s mobility experience, thereby paving the way for a cleaner and more sustainable environment.
Demystifying Green Subsidies for Electric Vehicles in Turkey
The main types of green subsidies available for electric vehicles in Turkey are:
- Purchase Tax Incentives: The revision of the Ă–TV (Special Consumption Tax) system offers reduced rates for electric vehicles (10-60%) compared to very high rates for combustion models (80-220%), promoting mass adoption of EVs.
- Import Tax Reductions: Thanks to the customs agreement with the EU, certain foreign manufacturers, particularly Chinese ones, benefit from facilitated market access without additional customs duties.
- Direct Government Subsidies: Several public programs support local production and industrial development around electric vehicles and batteries. The announced amounts are substantial: $4.5 billion for batteries and $5 billion for electric vehicle production.
Eligibility Criteria
- Be an individual buyer or business registered in Turkey.
- The vehicle must be certified as pure electric or plug-in hybrid according to the Turkish tax code.
- Some subsidies target only local production or strongly incentivize through specific bonuses when purchasing a model produced in Turkey (e.g., TOGG).
- Tax incentives mainly apply to new passenger cars; there are fewer benefits for electric commercial vehicles or buses.
Administrative Process
- Selection of an eligible vehicle according to the official list published by the Turkish Ministry of Finance.
- Submission of application to an authorized dealer including proof of identity, residence verification, and bank statement.
- Automatic calculation of the reduced Ă–TV rate during registration based on the applicable rate for the chosen model.
- Final payment including all adjusted taxes followed by registration with the public service.
Restrictions & Limitations
- Possible limitation on the maximum number of eligible vehicles per household (1-2 units/year in some cases).
- Restricted to new models; little to no direct aid for the secondary market/individual imports outside the EU.
- Annual budget cap set by decree that may lead to temporary suspension if national quota is reached before the end of the fiscal year.
Concrete Examples / Case Studies
| Case | Incentive Type | Observed Result |
|---|---|---|
| TOGG T10X | Direct subsidy + reduced Ă–TV | Competitive price vs. combustion; sales doubled in one year |
| Tesla Model Y | Specific tax adaptation | Sudden price increase after low tax adjustment |
| BYD | Customs facilities + local investment | Factory installation; increased imports |
Regional Comparison
| Country | EV Tax Rate (%) | Direct Subsidy | Major Restrictions |
|---|---|---|---|
| Turkey | 10–60 | Yes | Possible annual limits |
| Greece | ~0–20 | Yes | Price/power cap |
| Bulgaria | ~20–30 | No | Few restrictions |
In summary, Turkey stands out regionally with a proactive policy focused both on taxation and massive support for its national EV industry—with an immediate effect on local sales volume and strong attraction for foreign investors in this strategic sector.
Good to Know:
In Turkey, green subsidies for electric vehicles include tax incentives, import tax reductions, and direct government aid. Electric vehicles benefit from significant VAT reduction, and some imports may even be exempt from certain customs taxes, subject to meeting eligibility criteria such as a specific price threshold. Direct subsidies are often reserved for certified eligible models and may require prior vehicle registration with local authorities. A household may be limited to one or two subsidized vehicles. For example, in 2022, an Istanbul citizen was able to acquire an electric vehicle at a reduced price through one of these subsidies after successfully completing the required administrative procedures. Compared to other countries in the region, such as Greece which offers more generous aid but a longer process, Turkey stands out with moderate but relatively quick-to-obtain support, highlighting the country’s commitment to an accessible energy transition.
Development of Charging Infrastructure in Turkey
The Turkish government has implemented an ambitious policy to accelerate the development of electric vehicle (EV) charging infrastructure, supported by public subsidies and a stated commitment to become a regional leader in the sector.
Main Efforts and Collaborations:
- Public Investment Plans: Turkey plans to invest $4.5 billion in battery production and an additional $5 billion in the EV industry, with a stated goal of attracting foreign investment, particularly from China.
- Regulatory Support and Licenses: The state grants licenses to many private operators, both national and international. By October 2023, there were already 143 license holders in this dynamic market.
- Public/Private Partnerships: The rapid development of the network relies on collaboration between public agencies (such as EMRA – Energy Market Regulatory Authority) and major private or foreign groups.
Major Recent Projects:
- Massive deployment of charging stations across the country with strong concentration in major cities like Istanbul (2,784 stations by early 2025).
- Marked acceleration in total infrastructure: increase to over 11,037 public stations by end of February 2025, compared to about 8,861 points in early September 2023.
| Year | Total Public Charging Points/Stations | Future Goal |
|---|---|---|
| September 2023 | ~8,861 | |
| February 2025 | >11,000 | |
| 2032 Horizon | ~120,000 | Projected annual growth ~33% |
| EPDK High Scenario (2035) | Nearly 250,000 outlets | Between |
The estimated financial needs to achieve these goals amount to several billion USD until 2030-35. These funds are intended not only for pure infrastructure but also for supporting localized industrial development around batteries and key components.
The rapid development observed over the past two years bodes well for accelerated catch-up with mature European markets—provided the structural challenges mentioned above are successfully addressed.
Good to Know:
Turkey is actively engaged in developing electric vehicle charging infrastructure, supported by government initiatives aimed at multiplying charging stations across its territory. In collaboration with private companies and international partners such as Tesla and Shell, the Turkish government is implementing various projects to boost the expansion of charging stations, with an ambitious goal of increasing from 3,000 to 10,000 stations by 2030. Among recent projects, the installation of fast charging stations along major highway routes is a priority to facilitate electric vehicle adoption. However, Turkey faces major challenges regarding the strategic location of stations, adoption of advanced technologies like bidirectional charging, and the necessary funding, estimated at several million dollars. These efforts are part of the country’s energy transition, aiming for a significant reduction in its carbon footprint.
The Benefits of Green Incentives for Electric Car Owners
Main Benefits of Green Incentives for Electric Car Owners in Turkey
- Reduced Acquisition Costs through public subsidies and tax incentives.
- Financial Assistance for purchasing electric vehicles and installing charging stations.
- Massive Deployment of Charging Infrastructure throughout the country, making charging more accessible and affordable.
- Access to Innovative Technologies and Services thanks to public and private investments in the sector.
| Incentive Type | Description | Impact for Owners |
|---|---|---|
| Purchase Subsidies | Direct funding or purchase assistance, facilitating access to electric vehicles | Reduction in final purchase price |
| Tax Reductions | Temporary tax relief or exemptions for electric vehicles | Decrease in total cost of ownership |
| Installation Assistance | Partial or full coverage of home charging station installation | Facilitates and reduces cost of charging access |
| Public Investments | State programs to develop local production and R&D in the electric sector | Access to more competitive and cutting-edge vehicles |
| Station Deployment | Subsidies to install fast chargers in all 81 provinces | Expanded charging network, easier usage |
Specific Incentive Measures Adopted by the Turkish Government
- Launch of an ambitious public subsidy program aimed at supporting electric vehicle and battery production, with investments of several billion dollars.
- Subsidy program to deploy fast charging stations in all 81 provinces, to accelerate adoption and daily use of electric vehicles.
- Offering tax incentives to attract investors and manufacturers, particularly Chinese and European ones.
- Support for local battery production, with a target of 80 GWh by 2030.
- Sector development with plans to reach 1 million electric cars produced annually.
How These Measures Make Electricity More Accessible and Affordable
Deployment of a national charging station network, reducing dependence on gasoline and facilitating daily use of electric vehicles.
Financial support for installation of private and public charging stations, particularly in major cities and rural areas.
Economies of scale in electricity production and distribution, making charging costs more competitive compared to traditional fuels.
Positive Impacts on Environment and Local Economy
Reduction in COâ‚‚ Emissions and improvement in urban air quality.
Revitalization of the Turkish automotive industry, job creation in R&D, production, and services related to e-mobility.
Strengthening energy independence and reduction in fossil fuel import bills.
Development of local expertise in clean technologies and increased attractiveness for foreign investment.
Alignment with Turkey’s Environmental Goals
Contribution to decarbonizing the transportation sector.
Support for Turkey’s international commitments in combating climate change.
Strategic positioning of Turkey as a regional leader in the electric vehicle and battery industry, with export potential to Europe and Asia.
Note: Despite these measures, taxation evolves and some recent increases in special taxes on electric vehicles may temporarily slow market momentum, but the overall strategy remains focused on energy transition and international competitiveness of the sector.
Good to Know:
In Turkey, electric car owners benefit from several green incentives that make their investment more attractive. The Turkish government offers significant tax reductions and financial assistance for purchasing electric vehicles, thereby reducing the initial cost for consumers. Additionally, subsidies are available for installing home charging stations, facilitating access to electricity at lower cost. These measures aim not only to stimulate electric vehicle adoption but also to support the country’s environmental goals by reducing greenhouse gas emissions and promoting a greener economy. Facilitated access to an extensive and affordable charging infrastructure also encourages a smoother transition to renewable energy, contributing to a notable reduction in dependence on fossil fuels and promoting a more sustainable local industry.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
