Turkey is one of the largest vehicle manufacturing countries in the world, and the auto industry plays a key role in the Turkish economy. For Turkey, it is of particular importance to ensure that the industry is ready to meet challenges such as local air pollution, climate change, and energy security by offering innovative vehicles that can compete on the global market. Well-tested policy measures can help drive forward the necessary innovations.
Mandatory CO2 emission standards for new vehicles have been successfully applied in other markets, but at this point have not yet been introduced in Turkey. At an annual reduction rate of 4% and 6%, an average new car fleet CO2 level of 84 g/km and 69 g/km, respectively, would be achievable by 2023 while maintaining a consumer payback period as short as four to five years thanks to the fuel cost savings associated with lower CO2 emission levels. Revising the current vehicle taxation scheme in Turkey to be partly based on vehicle CO2 emissions would provide a strong financial incentive for customers to choose more efficient cars that emit less CO2. By introducing the new Worldwide Harmonized Light Vehicles Test Procedure (WLTP), mandatory on-road emissions tests for new vehicle models and regular retesting of in-use vehicles by the authorities or independent third parties, Turkey would significantly improve the reliability of vehicle emissions data, which is seen as the basis for all policy measures.
With these policy measures implemented, the total CO2 emissions of the light-duty vehicles fleet in Turkey could be reduced by about 36% compared to a business-as-usual scenario. The policy measures are expected to result in higher investments in vehicle technologies and less spending on fuel and oil imports, thereby providing benefits for all stakeholders in Turkey, including consumers and the vehicle and vehicle parts manufacturing industry.