Can Chery and MG move production to Turkey?

Parallel statements came from both brands.

Chery TIGGO 8 PRO

By: Mert Gökhan

Published by: Brian Potter

Jun 11, 2024 at 5:07am ET

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Turkey woke up on the morning of 8 June with new taxes. With the new regulation made by the Ministry of Commerce "in order to increase and protect the falling share of domestic production in the domestic market", 40 per cent customs duty was added to models from China.

Chinese cars, whose sales have been on the rise in the country in recent years, managed to increase their market share to nearly 10 per cent as of the 5th month of 2024.

Among these brands, prominent names Chery and MG made statements about the additional customs tax. Both brands look favourably on the transition to domestic production.

Chery Turkey's official Instagram account shared and Chery Turkey President Si Fenghou signed the statement as follows:

"Turkey is one of our most strategic markets and also an important part of Chery's European strategy. For this reason, in order to better serve our customers as the Chery brand, we established Chery Turkey, our subsidiary company, with our own equity in September 2022.

We respect the government's decision on tax regulation. Considering the current situation; on the one hand, we are working to adapt to the changes made, on the other hand, we are intensively working on the feasibility analysis of factory construction in Turkey and production in Turkey together with the relevant Ministries.

We are endeavouring to realise production in Turkey as soon as possible. We are and will continue to be with our customers with our sales and service with our authorised dealer network spread throughout Turkey."

However, we also know that Chery has chosen Spain for its production in Europe.

The statement on the MG side came from Kağan Dağtekin, CEO of Doğan Trend Otomotiv. Dağtekin made a statement under Emre Özpeynirci's tweet.

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Stating that Doğan Trend Otomotiv has been keen to move MG's production to Turkey for some time, Dağtekin said*:*

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"MG Management has officially announced that they will establish production facilities in Europe to continue their development in Europe. As Doğan Trend, we are working to ensure that the first of the planned facilities in Europe will be in Turkey. We have reached the stage of signing a letter of intent with MG last week."

Dağtekin shared that they also receive support from the Ministry of Industry and said*, "We also receive good support from the Ministry of Industry. In fact, last December, we visited SAIC-MG headquarters with a large team under the leadership of our Minister of Industry, Mr. Fatih Kacır, and conveyed the industrial capabilities of our country, especially our strength in automotive production*."

For now, there is no clear statement about whether the facilities will be moved to Turkey. But let's say that both the European Union and the United States have special additional customs duties on Chinese brands.

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