SCT surprise will stimulate the automobile market: Prices will decrease and sales will increase
By the Presidential Decree, the base threshold for electric cars subject to 10 percent special consumption tax (SCT) and whose engine power is below 160 kilowatts has been increased from 1 million 250 thousand liras to 1 million 450 thousand liras. Thus, it is aimed to reach electric cars that fall within the said tax base threshold at a lower cost.
Skywell Turkey Chief Executive (CEO) Mahmut Ulubaş, in his statement on the subject, stated that there has been a significant increase in electric car sales in the last year and that this has made a serious contribution to the ecosystem.
Uluıbaş stated that with the spread of electric vehicles, dependence on oil has decreased and this will affect the reduction of the current account deficit, and that there is a process that will pave the way for new investments, and said, “With this circular, brands will have a stronger hand in not being affected by possible exchange rate increases and will also increase the risk of purchasing electric vehicles.” “It will have a positive impact on users’ purchasing decisions.” said.
Ulubaş said, “As Ulu Motor, we aim to continue to maintain our competitive price structure with our Skywell ET-5 vehicle in the D-SUV segment, according to sectoral developments and exchange rate movements, and on the other hand, we hope that this base increase will not lead to an increase on the SCT side. Because such an increase is new.” “It will reduce Turkey’s attractiveness for investments. In addition, as electric vehicle investments increase, the current account deficit will decrease as dependence on oil decreases. I have full faith that we will increase our sales in the EV segment with our electric models that are competitive in the sector.” he said.
“It was a positive update”
“It was a positive update”
Tibet Soysal, Deputy General Manager of Doğan Trend Automotive, representing the MG brand in Turkey, said, “It was a positive update; due to the increase in the exchange rate, the number of electric car models in the 10 percent tax bracket had decreased significantly. In the short term, since brands were not prepared for the tax change, Availability will not be high initially.” he said.
Soysal also added that it would not be right to think that prices will only decrease, and that upward changes in the prices of models that have been forced to stay in the 10 percent tax bracket with supports can be observed over time.
“There may be a decrease in the prices of some electric models in the market”
“There may be a decrease in the prices of some electric models in the market”
Hyundai Assan General Manager Murat Berkel, in his statement on the subject, said that with the new SCT base update regarding electric vehicles, some models that are in the upper SCT bracket and do not exceed 160 kW may enter the 10 percent SCT segment, and in this case, there may be a decrease in the prices of some electric models in the market. .
Stating that there may be an increase in the sales of electric vehicles in the coming days, especially after the prices decrease, Berkel said:
“As the Hyundai brand, we currently sell the standard version of our IONIQ 6 model with a 10 percent Special Consumption Tax bracket. With the new regulation, we will be able to sell the 125 kW 4×2 version of our IONIQ 5 model with a 10 percent Special Consumption Tax bracket. Today, the list price is 2 million 185 thousand TL. “We will update the price of our kW IONIQ 5 model to 1 million 718 thousand TL. We aim to increase our sales in the electric vehicle (EV) segment with our electric models that will have a competitive price structure.”
– “Brands will redefine their positions on pricing”
BYD Turkey General Manager İsmail Ergun stated that increasing the tax base from 1 million 250 thousand lira to 1 million 450 thousand lira for fully electric passenger cars with engine power below 160 kilowatts (kW) and in the 10 percent Special Consumption Tax bracket would be beneficial in terms of encouraging the use of environmentally friendly technologies.
Stating that brands will re-determine their positions on pricing according to this development, Ergun said, “With this change, there may be those whose current prices are in the 40 percent SCT bracket and fall to 10 percent. With this decision, consumers will be able to own vehicles in the 10 percent SCT bracket for a while at more affordable prices.” “There will be a period.” made his assessment.
“A positive step, but the update rate seems insufficient”
“A positive step, but the update rate seems insufficient”
Ali Haydar Bozkurt, Chairman of the Board of Directors of the Automotive Distributors and Mobility Association (ODMD), stated that there has been a need for a base update for all models for a long time, and noted that a base update for electric cars is a positive step, but the update rate seems insufficient. .
Bozkurt also added that there is an expectation to update all electric vehicles, instead of just a certain segment.
