Tesla sales soar in Turkey, becomes No. 2 brand in August

ISTANBUL (Reuters) -Tesla's (TSLA) auto sales soared in Turkey in August, reaching the No. 2 spot ahead of traditional European and Japanese rivals, as the U.S. brand benefited from buyers' seeking tax breaks and a currency hedge.

The electric vehicle (EV) maker sold 8,730 Model Y's, up 86% from the previous month, in sharp contrast to a sales rout in some parts of Europe amid fierce competition from China's BYD and a backlash against CEO Elon Musk.

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Tesla's Turkish sales trailed only Renault and surpassed local best sellers Fiat, Volkswagen, Toyota and Hyundai according to data from distributors association ODMD.

Tesla accounted for 50% of all electric vehicles sold in August, according to data from industry consultancy EBS Danismanlik. BYD trailed Tesla with 1,639 units, and Turkish electric-only brand TOGG sold 1,249.

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Analysts said the jump in August partly reflects erratic allocations, from Tesla's German manufacturing plant. In March and April, for example, it sold only about 100 units in Turkey, before jumping to above 4,000 units in June and July, scoring around a third of EV sales.

Turkish buyers increasingly want electric only vehicles because of lower tax rates, analysts say. EV market share has held at 20% the last three months, up from 8% last year.

Tesla's base Model Y, the only one available in Turkey, is taxed at the county's lowest bracket, considerably lower than conventional combustion engine cars even after a tax hike in late July.

Turkey's complex vehicle tax system includes a special consumption tax and value added tax. The combined rate, ranges from 50% to 284%.

Turks also see their Teslas, valued in euros, as a way to hedge against weakness in the Turkish lira, which has shed more than 80% of its value in recent years.

Tesla sales for the January-August period jumped more than four fold from the year-ago period to around 26,000 units. TOGG was the second best selling EV, up 42% year on year.

Turkey's light vehicle market, including cars and commercial vans, was up 5% at 1.3 million units in 12 month cumulative terms in August, a historical high.

(Reporting by Can Sezer; Editing by Jonathan Spicer, Alexandra Hudson) Sign up for the Yahoo Finance Morning Brief

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