[rth]

Right, they can not lower taxes depends on manufacturer. But they can choose another way.

Like: - Government banks can provide 0 interest (5 years term) credit only for local car. - remove all taxes for 0 emission only with some spesifications like between 200-300 HP cars only to block Tesla (whatever).

Similar tricks already applying by all governments around globe.

I do not think any foreign company like Tesla will change his spec just to sell their cars in Turkey.

[throwawayEV]

> - remove all taxes for 0 emission only with some spesifications like between 200-300 HP cars only to block Tesla (whatever). > Similar tricks already applying by all governments around globe.

> I do not think any foreign company like Tesla will change his spec just to sell their cars in Turkey.

True and false.

Yes, such tricks for circumventing (sometimes outright disadvantageous and stupid) foreign trade agreements are a common thing globally.

At the same time, tuning specs to cater for local tax bands, local driving license restrictions, import taxes, or _these tricks_ is also a common thing, dating back before ECUs with physical chokes etc. And nowadays, it is a bit flip in EV's software to restrict the max output, so why not produce a local market version after a law&marketing department brainstorming and two-week R&D testing.... And nowadays, another two weeks later, instead of traditional physical/chiptuning derestriction, there is a downloadable "unathorized jailbreak" to remove that.

Mind you, cars are a 20.000+ USD things. Put on low incentive and nobody cares. Put on high enough incentive and labor-intensive things become lucrative - such as assembling the car completely, disassembling the car again, shipping parts by train, reassembling the cars and bam, local car. If you can disassemble and reassemble it cheaper than 10.000 USD import tax, you have net gain (this was really done in some parts of Europe!). And you can flip bits cheaper than 10 USD and you sell.

[rth]

Depends!

Might work for some countries (like banana republic) but I do not think it would be valid case for Turkey. It is not about assembling/disassembling or where the factory is. Toyota, Renault, Honda, Isuzu, Hundai, Ford already producing (yes factories planted) in Turkey but consumers pay custom tax.

They can drop "income tax" for TOGG manufacturer, while others pay income tax.

Like, Amazon, Google does not pay their taxes fully while many others pay.

We are not talking about VAT or custom, it is income tax that government takes some percentage from the profit of the TOGG. Then, TOGG can sell their cars cheaper even though there is Tax and VAT.

If they really want to make price advantage for TOGG, they will find a way to achieve their goal.

[ptaipale]

They can make a price advantage for TOGG, but if they do it via taxes, tariffs or subsidies, they will cripple all the other manufacturing in the country.

Because car industries are expecting a downturn in the coming years, this would be a strong indicator to international manufacturers for deciding where to cut production.

[rth]

They are already closing their factories (or reducing capacity) in many countries. I know Honda will close by 2021 in England and Turkey.

May be, Turkish government preparing for this.

"What if they close their factories one day" is the question in their mind?

Whatever the case is, it is a good news for everybody. I believe every country must build their own technology to compete others.