Will the SCT regulation for electric cars affect prices?

While managers of brands selling electric cars in Turkey generally welcome the update of the excise tax base, they say the regulation will redetermine brands’ pricing positions.

By Presidential Decree, the base threshold for electric vehicles subject to the 10 percent special consumption tax (SCT) and whose engine power is less than 160 kilowatts was increased from 1 million 250 thousand lira to 1 million 450 thousand lira. In this way, the aim is to reach electric cars that are within said tax base threshold at a lower cost.

Skywell Turkey Chief Executive Officer (CEO) Mahmut Ulubaş, in his statement on the matter, stated that there has been a significant increase in electric car sales in the past year and this has made an important contribution to the ecosystem.

Uluıbaş stated that with the proliferation 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, the brands They will have more strength not to be affected by possible increases in the exchange rate and will also increase the risk of purchasing electric vehicles: “It will have a positive impact on users’ purchasing decisions.” saying.

Ulubaş said: “As Ulu Motor, our goal is to continue to maintain our competitive pricing structure with our Skywell ET-5 vehicle in the D-SUV segment, in accordance with the developments of the sector and exchange rate movements and, on the other hand, side, we hope that this base increase will not lead to an increase on the SCT side. Because such an increase will reduce Türkiye’s attractiveness for new investments. Furthermore, as investments in electric vehicles increase, the current account deficit will decrease as dependence on oil decreases. “I am fully confident that we will increase our sales in the electric vehicle segment with our electric models that are competitive in the industry.” he said.

‘PRICES MAY CHANGE UPWARDS OVER TIME’

Doğan Trend Automotive Deputy General Manager Tibet Soysal, who represents the MG brand in Turkey, said: “It was a positive update, the number of electric car models in the 10 percent tax category has decreased significantly due to the increase in the rate. exchange. In the short term, vehicle availability will not be high initially, as brands are not prepared for the fiscal change.” he said.

Soysal also added that it would be wrong to think that prices will only decrease, and that over time upward changes can be seen in the prices of models that have been forced to remain in the 10 percent tax bracket with brackets.

‘PRICE DECREASE MAY BE EXPERIENCED BY SOME MODELS’

Hyundai Assan General Manager Murat Berkel, in his statement on the subject, said that with the new update of the SCT base regarding electric vehicles, some models that are in the upper section of SCT and do not exceed 160 kW They will be able to enter the 10 percent segment of SCT, and in this case, there may be a decrease in prices for some electric models on the market.

BYD Turkey CEO İsmail Ergun stated that it would be beneficial to increase the tax base from 1 million 250 thousand lira to 1 million 450 thousand lira for fully electric passenger cars with an engine power of less than 160 kilowatts (kW) and in the 10 percent Special Consumption Tax bracket. in terms of promoting the use of environmentally friendly technologies.

Stating that brands will redetermine their price positions in line with this development, Ergun said: “With this change, there may be those whose current prices are in the 40 percent Excise Tax bracket and decrease to 10 percent. “With this decision, there will be a period in which consumers will be able to own vehicles in the 10 percent Excise Tax bracket at more affordable prices.” he made the assessment of it.

ODMD PRESIDENT: UPDATE RATE IS INSUFFICIENT

Ali Haydar Bozkurt, Chairman of the Board of Directors of the Association of Mobility and Automobile Dealers (ODMD), stated that there has been a long-standing need for a basic update for all models and pointed out that a basic update for cars is necessary. electrical. A positive step, but the pace of updating seems insufficient.

Bozkurt also added that there is an expectation to upgrade all electric vehicles, rather than just a certain segment. (AA)