Turkey’s EV Momentum: The Market Changes

Turkey is quietly, but confidently, becoming one of the most dynamic players in the global electric vehicle (EV) landscape. Backed by bold government policies, growing local innovation, and major global investments, the country is moving full-speed toward an electrified future. Here's a closer look at the major trends shaping Turkey's EV revolution.

The EV Market in Turkey: Scaling at Speed

Turkey’s EV market is still in its early stages but holds immense growth potential. In 2023, the country produced a total of 1.4 million vehicles, of which 72,000 were electric vehicles (EVs)—representing just 5% of total production. While the current EV share remains modest, rising investment, expanding production capacity, and Turkey’s strategic geographic position signal a strong upward trajectory for the sector.

Turkey's EV Market Situation

Government incentives, increasing environmental awareness, and evolving consumer preferences are expected to push EV adoption higher in the coming years. With targeted policies and growing infrastructure, Turkey is laying the foundation to transform from a traditional automotive hub into a regional EV powerhouse.

Global OEMs Accelerate Investment in Turkey

Turkey’s strategic location, cost-effective labor market, and customs union agreement with the EU have made it a magnet for international OEMs (Original Equipment Manufacturers) looking to expand their EV footprint.

• BYD, one of China’s largest EV manufacturers, announced a $1 billion investment in a new EV production facility in Turkey. The plant will manufacture up to 150,000 vehicles annually and is expected to begin operations by 2026.

• European and Asian OEMs are also exploring R&D and battery production partnerships with Turkish firms, leveraging the country's emerging role in the regional EV supply chain.

Presence of Global OEMs

These moves are more than just strategic — they signal Turkey’s potential to become a manufacturing and export hub for EVs in Europe and the Middle East.

Government Support: Driving the Transition

The Turkish government is taking bold steps to transform the country into a regional EV leader through targeted, high-impact incentives. As part of a broader $30 billion support program for high-tech industries, $4.5 billion has been earmarked specifically to accelerate the growth of Turkey's EV ecosystem.

This funding aims to:

• Establish state-of-the-art battery production capabilities

• Provide financial support for EV startups and innovation hubs

• Expand and modernize nationwide charging infrastructure

In addition to this focused investment, Turkey is ambitiously targeting 80 GWh of battery production capacity by 2030. This milestone would not only support domestic EV demand but also position Turkey as a strategic supplier in the global battery and energy storage market.

Through this multi-pronged support strategy, Turkey is ensuring that both the industrial backbone and the innovation layer of its EV sector are primed for long-term success.

Rise of Turkish EV Startups: Innovation at the Core

While giants like TOGG dominate headlines, a new generation of EV startups is rising fast:

• Pilotcar: Focuses on electric utility vehicles and urban mobility solutions.

• Musoshi: Specializes in sustainable mobility services, including EV fleets and infrastructure.

• Tragger: Innovating in electric logistics and last-mile delivery with smart, compact EVs.

These startups reflect Turkey’s growing capabilities in mobility tech, software development, battery innovation, and autonomous systems — and they are attracting both domestic and international investors eager to support the next wave of transportation innovation.

Turkey is no longer on the sidelines — it is now an active force in the global EV movement. With increasing production capacity, a rising local customer base, and world-class talent in mobility innovation, the country is well-positioned to become a regional EV powerhouse.

As ALEXEC Consulting continues to monitor and support strategic developments in the Turkish EV ecosystem, one thing is clear: the electrification journey in Turkey has only just begun.