Honda Turkey Expects Special Consumption Tax Base and Credit Limit Update by Year-End

The update to the ÖTV base and credit limits is the regulatory change the automotive market most expects this year, according to Bülent Kılıçer, deputy general manager of Honda Turkey. Speaking to Bloomberg HT, Kılıçer said measures to support demand are needed.

Kılıçer recalled that in previous years the tax brackets were raised by between 20 and 30 percent. He said a similar update would have a significant impact on both vehicle prices and market size. No official regulation or date has been announced yet. For now, it is an industry expectation.

Campaigns and cash constraints

Kılıçer said the discounts and campaigns running since the start of the year could deepen in the final quarter as competition intensifies. However, given manufacturers' cost and profitability balance, the room for further discounts has narrowed considerably.

Kılıçer said recent developments in capital markets have also affected vehicle sales and that cash constraints will persist. He linked order cancellations at dealerships to this squeeze, and said the effect could show up in October sales figures.

Year-end sales outlook

Kılıçer said that because 2025 saw record sales, the market is declining in 2026 due to a base effect. He said car ownership in Turkey remains behind European countries, so he expects demand to continue. He said the market could close the year with more than 1 million sales.

For Honda Turkey, he expects year-end results 10 percent above current sales levels.

Kılıçer also addressed the European Union's Made in EU approach. He said that treating parts produced in Turkey as equivalent to European production could benefit the sector, and that risks related to the regulation should be closely managed.