Türkiye has imposed an additional 40% tariff on Chinese-made vehicles, effective July 7, to narrow the current account deficit and protect domestic automakers. This tariff, with a minimum of $7,000 per vehicle, applies to internal combustion and hybrid cars. The new tariff aims to address the declining share of domestic auto production and is expected to significantly increase Chinese car prices in Türkiye. Despite a recent market contraction, overall vehicle sales in the first five months of 2024 rose by 6% YoY, with Chery and MG among the major Chinese brands in the market.