This paper analyzes the Turkish passenger car market and the effect of the existing tax system on both vehicles on the road and newly registered cars. It outlines the most recent developments in the Turkish passenger car market and creates a basis for further research on optimizing the tax system.

This analysis shows that the final rules agreed on how zero and low-emission cars are counted towards the Cars C02 regulation – i.e. the multiplier for plug-in hybrids, double-counting in some markets as well as the potential inclusion of Norway – leave much room for gaming and loopholes.

While the average fuel economy of vehicles continues to improve, the rate of progress has slowed in recent years.

On December 17, 2018, representatives of the European Commission, the European Parliament, and the European Council agreed on a compromise for the European Union (EU) regulation setting binding carbon dioxide (CO2) emission targets for new passenger cars and light-commercial vehicles for 2025 and 2030.

Transport emissions of carbon dioxide (CO2) have not decreased nearly as much as CO2 from all other sectors in Europe. Together with emission limits, taxes can help accelerate reductions by giving consumers incentives for buying low-emission vehicles, creating a market-pull effect.

The European vehicle market statistics pocketbook offers a statistical portrait of passenger car and light commercial vehicle fleets in the European Union, updated annually. The emphasis is on vehicle technologies and emissions of greenhouse gases and other air pollutants.