Turkey
Turkey
February 25, 2024

Turkey's Electrification Pathway: Driving Towards Sustainable Fleet Management

Navigating the Transition to Electric Mobility in Turkey's Automotive Sector

Turkey's Electrification Pathway: Driving Towards Sustainable Fleet Management
Turkey
February 25, 2024
Turkey's Electrification Pathway: Driving Towards Sustainable Fleet Management
Navigating the Transition to Electric Mobility in Turkey's Automotive Sector
Summary

Turkey's initiative towards sustainable fleet management and vehicle electrification signifies a pivotal move towards greener transportation solutions. Despite facing challenges such as a moderate electricity emission factor and nascent EV infrastructure, Turkey's efforts in adopting BEVs and HEVs showcase a commitment to reducing carbon emissions and fostering energy efficiency. The government's supportive policies and the development of domestic electric vehicle production are instrumental in this transition. As Turkey continues to navigate the path to electrification, the focus on expanding renewable energy sources and enhancing charging infrastructure will be crucial. Turkey's approach to sustainable fleet management and electrification not only contributes to environmental sustainability but also sets a foundation for a cleaner, more sustainable transportation future.

Country General Overview

Introduction

Turkey, straddling two continents, Europe and Asia, offers a unique blend of cultural heritage and strategic geographic positioning, making it a pivotal nation for corporate fleet management. With its dynamic economy, extensive road network, and significant environmental challenges, Turkey stands as a critical hub that connects the East with the West. The country's corporate fleet management sector is at the forefront, navigating through a landscape that demands efficiency, cost reduction, and sustainability.

Geographic and Infrastructure

Turkey's geography is diverse, featuring mountains, valleys, lakes, and a lengthy coastline that stretches along the Black Sea, Aegean Sea, and Mediterranean Sea. Covering an area of approximately 783,356 square kilometers, Turkey possesses a comprehensive road network that spans about 65,000 kilometers of highways and state roads, crucial for both domestic and international logistics. This extensive infrastructure facilitates the movement of goods and services across the country, from major urban centers like Istanbul and Ankara to remote regions, necessitating adaptable and resilient fleet management strategies to ensure efficiency and reliability.

Economic

Turkey's economy is robust and multifaceted, with a GDP of around $720 billion and a population of over 82 million people. The country has a diverse industrial base, including automotive, textiles, and electronics, coupled with a growing services sector. With approximately 272 motor vehicles per 1000 people, the reliance on road transportation is significant, underscoring the importance of efficient fleet management in enhancing operational productivity, reducing logistics costs, and supporting Turkey's economic growth and competitiveness in global markets.

Environmental Considerations

Environmental sustainability poses a considerable challenge in Turkey, as indicated by its Environmental Performance Index (EPI) 2022 rank of 172 out of 180 countries, with a score of 26.3. This ranking reflects the urgent need for addressing issues such as air pollution, water scarcity, and waste management. For corporate fleet management, the environmental context emphasizes the importance of adopting sustainable practices, including the use of fuel-efficient vehicles, optimizing routes to reduce carbon emissions, and exploring alternative energy sources. Prioritizing environmental sustainability not only helps mitigate Turkey's ecological footprint but also aligns corporate operations with global environmental standards and local regulations.

Sustainable Fleet Management

Scopes Data - Electrification Recommendation Rank Icon

Electrification Recommendation Rank

Turkey
's Category

Rank D : Low Emission, Possible for EVs

These are low emission countries with a possible environment for EV adoption, or high emission countries with a favorable environment for EVs. Transitioning to BEVs is somewhat limited. Pinpoint vehicles that are easy to adopt for BEVs and consider transitioning to hybrid electric vehicles (HEVs) if renewable electricity integration is challenging.

Same Category Countries

Bulgaria, Croatia, Czechia, Estonia, Greece, Japan, Lithuania, South Korea, Taiwan, Turkey, United States

Info:

The Electrification Recommendation is derived from two aspects: each country's EV Readiness assessment (based on factors such as Electric Vehicle market share, environmental consciousness, GDP, etc.), and the Electricity Emission Factor (EF). Even if a country has a low Electricity EF, enabling CO2e emissions reduction through transitioning to BEVs, the adoption of BEVs could be challenging if the country lacks adequate infrastructure or faces financial constraints.

Since every company operates in a unique environment, this recommendation might not apply in all cases. However, it can be useful for setting a general direction.

Scopes Data - CO2e From Electricity Icon

Electricity EF Category

Turkey
's Electricity EF

0.375

CO2e kg/kWh

Ref:

Climate Transparency (2021 Report) in 2020

Turkey
's Category

Rank 2 : Moderate Emission Countries (0.25 - 0.50 kg/kWh)

Info:

Countries with high Electricity EF have less benefit for electrification

  • Rank 1: 0.00 – 0.25 kg/kWh (About 0 – 38 CO2e g/km)
  • Rank 2: 0.25 – 0.50 kg/kWh (About 38 – 76 CO2e g/km)
  • Rank 3: 0.50 – 0.75 kg/kWh (About 76 – 113 CO2e g/km)
  • Rank 4: 0.75 – 1.00 kg/kWh (About 113 – 151 CO2e g/km)
  • Rank 5: More than1.00 kg/kWh (About more than 151 CO2e g/km)
Scopes Data - EV Readiness Icon

EV Readiness Category

Turkey
's Category

Rank 3 : Possible Environment for EV Adoption

Market Share information
Scopes Data - BEV Icon
2022 BEV

0.8

%

2023 BEV

4.4

%

Scopes Data - HEV Icon
2022 HEV

0.4

%

2023 HEV

0.7

%

Scopes Data - Non-ICE Icon
2022 Non-ICE

1.2

%

2023 Non-ICE

5.9

%

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

2022 EPI Results
Rank

172

/180

Score

26.3

2022 EPI Results : Environmental Performance Index(EPI) provides a quantitative basis for comparing, analyzing, and understanding environmental performance for 180 countries.

Ref:Wolf, M. J., Emerson, J. W., Esty, D. C., de Sherbinin, A., Wendling, Z. A., et al. (2022). 2022 Environmental Performance Index. New Haven, CT: Yale Center for Environmental Law & Policy. epi.yale.edu

Introduction to Sustainable Fleet Management and Electrification Efforts

Turkey is progressively navigating towards sustainable fleet management and the electrification of vehicles, highlighting its commitment to environmental sustainability. With the global push towards greener transportation solutions, Turkey's efforts in adopting Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs) are pivotal. Despite facing a moderate electricity emission factor, the country is making strides in reducing its transportation sector's carbon footprint. The government and private sector initiatives, including incentives for electric vehicle (EV) purchases and infrastructure development, are fostering a conducive environment for the transition to electric mobility. This effort not only addresses Turkey's environmental goals but also sets a path for energy efficiency and sustainability in the automotive sector.

Current Vehicle Landscape: Preferences and Powertrain Segments

Turkey's vehicle landscape is characterized by a diverse array of powertrains, with a significant predominance of Internal Combustion Engine (ICE) vehicles. However, there's a noticeable shift towards electrification, marked by an increasing interest in BEVs and HEVs. The introduction of Turkey's first domestically produced electric car, TOGG, signifies a landmark moment in the country's automotive industry, showcasing a growing consumer interest towards electric mobility. Despite this, the market share for electric vehicles remains relatively low, with BEVs and HEVs making up a small fraction of total vehicle sales. The popular vehicle segments include the C-Segment and SUV-Compact, with models like the Renault Megane and MG ZS SUV among the favored choices for BEVs. The transition is also visible in the corporate fleet sector, where there's a growing interest in adopting more sustainable vehicle options to reduce emissions and comply with global sustainability trends.

Turkey

Grid.js Table

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

Electric Vehicle Market Overview and Trends

The EV market in Turkey is at a nascent stage but exhibits potential for significant growth. The EV adoption rate has seen a gradual increase, supported by government incentives and the development of charging infrastructure. The market's expansion is further propelled by the rising fuel prices and growing environmental consciousness among consumers and businesses alike. In 2023, EVs, including both BEVs and PHEVs, accounted for a small but growing percentage of new vehicle sales. The launch of TOGG and the entry of international brands like Tesla into the Turkish market are expected to boost consumer confidence in electric mobility. However, the adoption rate is challenged by factors such as the initial high cost of EVs, range anxiety, and the need for more widespread charging infrastructure. Despite these challenges, the trend towards electrification is clear, with corporate fleets and individual consumers increasingly considering EVs as viable alternatives to traditional ICE vehicles.

Energy Context: Electricity Emission Factors and Implications for Electrification

Turkey's electricity generation mix, which leads to a moderate emission factor of 0.375 kg CO2e/kWh, presents both challenges and opportunities for vehicle electrification. This emission factor reflects a reliance on fossil fuels but also indicates a significant portion of electricity generated from renewable sources. In this context, transitioning from ICE vehicles to BEVs can reduce CO2e emissions by approximately 50% to 75% for a compact vehicle. The impact of electrification on reducing greenhouse gas emissions is substantial, making the case for accelerating the adoption of electric vehicles. However, for the full environmental benefits of EVs to be realized, further diversification of Turkey's energy mix towards renewable sources is essential. The current energy context underscores the importance of integrating cleaner energy sources to support the electrification of transportation and reduce overall CO2e emissions.

Challenges and Opportunities in EV Adoption

The path towards widespread EV adoption in Turkey is paved with both challenges and opportunities. High initial purchase costs, limited charging infrastructure, and consumer range anxiety are among the primary barriers hindering faster EV adoption. Additionally, the moderate electricity emission factor necessitates further investments in renewable energy to maximize the environmental benefits of electrification. However, the opportunities for EV adoption in Turkey are significant. The government's supportive policies, including tax exemptions and subsidies for EV purchases, coupled with efforts to expand the charging infrastructure, are creating a more favorable environment for electric mobility. The growing awareness of environmental issues among the Turkish population and businesses is also driving interest in cleaner transportation options. The entry of domestic and international EV manufacturers into the market is another positive development, signaling a competitive and diverse EV market. Addressing the challenges and leveraging these opportunities can accelerate Turkey's transition to sustainable transportation, aligning with global efforts to combat climate change.

Additional Insights: Shaping the Future of Transportation

Turkey's journey towards sustainable fleet management and vehicle electrification is part of a broader transformation in the transportation sector. With a focus on reducing carbon emissions and enhancing energy efficiency, Turkey is exploring innovative solutions to overcome the challenges of electrification. Initiatives like subscription-based EV services and the expansion of charging infrastructure are indicative of the country's commitment to facilitating a smooth transition to electric mobility. As Turkey continues to develop its EV ecosystem, the role of technology, policy, and consumer behavior will be crucial in shaping the future of transportation. The efforts undertaken today to promote electric vehicles will not only contribute to environmental sustainability but also redefine mobility for future generations, positioning Turkey as an active participant in the global shift towards cleaner transportation options.

Country Case Study

The "Base Fleet" percentage is set according to the sales ratio of each powertrain in Turkey for the year 2023. (For countries where sales ratios cannot be obtained, it is assumed all are ICE vehicles.) The "Recommended Fleet" is designed to be realistic (based on a rank determined by the Electricity Emission Factor Category and EV Readiness Category, deciding a practical range) and efficient in reducing CO2e emissions. It is not expected that the entire fleet will switch to this mix at once but rather after one or two renewal cycles over about 4 to 8 years, considering the usual fleet renewal period is around 4 years. This is viewed as a recommendation for the fleet composition in 4 to 8 years.

The calculation of CO2e emissions is based on a fleet of 100 vehicles traveling an average of 30,000 km per year. Therefore, if your company's fleet size in Turkey is 1,000 vehicles, multiplying the results by 10 will give you an approximate value. For fuel, it is assumed all vehicles use petrol (2345.02 CO2e g/L), and for electricity, the average emission factor of Turkey is used. For PHEVs, it is calculated assuming 50% electricity usage and 50% fuel usage.

Analysis of Fleet Transition from Current State to Sustainable Future

This refers to the average CO2e emissions per kilometer calculated based on the actual energy (Fuel and Electricity) used. It also takes into account the size of the vehicles used in Turkey's fleet.

Scopes Data - ICE Icon

ICE

(CO2e g/km)

Scopes Data - HEV Icon

HEV

(CO2e g/km)

Scopes Data - PHEV Icon

PHEV

(CO2e g/km)

Scopes Data - BEV Icon

BEV

(CO2e g/km)

ICE

HEV

PHEV

BEV

In Turkey, the corporate fleet is on the brink of a significant transformation. Currently, the fleet is heavily dominated by ICE vehicles, totaling 99 units, which mirrors the global reliance on fossil fuel-powered transportation. The proposed transition strategy outlines a substantial reduction of ICE vehicles to 12 units, marking a decisive step towards minimizing environmental impact. The strategy emphasizes a remarkable increase in HEVs, from zero to 69 units, showcasing a commitment to leverage existing technologies for immediate emission reductions while paving the way for electrification. Furthermore, the introduction of PHEVs and BEVs, increasing to 5 and 14 units respectively, indicates a forward-looking approach to fully embrace electric mobility.

This transition in Turkey reflects an understanding of the critical need to reduce carbon footprints across corporate fleets, aligning with the country's moderate electricity emission factor and the global push towards sustainability. By diversifying the fleet composition towards electrified vehicles, Turkey is not only addressing environmental concerns but also preparing for future advancements in vehicle technology and infrastructure. The shift towards HEVs, PHEVs, and BEVs is a clear indicator of Turkey's readiness to adopt cleaner, more sustainable transportation solutions, contributing to the country's broader environmental and energy goals.

Analysis of CO2 Emission Reductions Through Fleet Transition

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Base Fleet Mix Case
Reasonable Recommended Fleet Mix Case

The envisioned transition of corporate fleets in Turkey presents a substantial opportunity for CO2 emission reductions. Initially, the fleet, dominated by ICE vehicles, is responsible for 349 tons of CO2 emissions from fuel combustion alone. The transition strategy drastically reduces these emissions to 42 tons, reflecting the significant decrease in the number of ICE vehicles. The incorporation of HEVs as a major component of the fleet introduces a new dynamic, with these vehicles expected to emit 182 tons of CO2, leveraging their efficiency and lower emission rates compared to traditional ICE vehicles. Additionally, the inclusion of PHEVs and BEVs contributes 13 and 21 tons of CO2e respectively, emphasizing the role of electrification in reducing the fleet's overall carbon footprint.

This strategic shift towards a more diversified and electrified fleet composition underscores the potential for achieving meaningful emission reductions in Turkey. The move from a base fleet mix to a recommended transition results in a total CO2e reduction to 258 tons from the original 350 tons, marking a significant step towards environmental sustainability. As Turkey continues to develop its electric vehicle infrastructure and increase the share of renewable energy in its electricity mix, further reductions in CO2 emissions from the corporate fleet are anticipated, aligning with the country's sustainability objectives and global climate commitments.

Comparative Analysis of CO2e Emissions Across Fleet Scenarios

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Evaluating the CO2e emissions across different fleet scenarios in Turkey reveals the impact of various electrification strategies on reducing environmental footprints. The base fleet mix, with a heavy reliance on ICE vehicles, sets a benchmark of 350 tons of CO2e emissions. Transitioning to a recommended fleet mix decreases total emissions to 258 tons, showcasing the effectiveness of integrating HEVs, PHEVs, and BEVs into the fleet. An all-ICE scenario would result in the highest emissions, at 353 tons, highlighting the urgency of transitioning away from fossil fuels.

The all-HEV scenario emerges as a viable alternative, significantly reducing emissions to 265 tons, which underscores the potential of hybrid technology under current conditions. An all-PHEV fleet further balances fuel and electricity-based emissions, totaling 251 tons of CO2e, reflecting the intermediate position of PHEVs in the emission spectrum. The most ambitious scenario, involving an all-BEV fleet with varying degrees of renewable electricity incorporation, illustrates the transformative potential of clean energy. Emissions drop to 148 tons under the current electricity mix and decrease dramatically to 37 tons with 75% renewable electricity, demonstrating a clear correlation between renewable energy utilization and CO2e emission reductions.

These scenarios underscore the critical role of electrification and renewable energy integration in achieving substantial CO2e emission reductions. With Turkey's moderate electricity emission factor and increasing readiness for EV adoption, the country is well-positioned to leverage these changes, aligning with broader sustainability goals and climate change mitigation efforts.

https://scopesdata.com/sustainability-country-information/turkey-2023

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