Chinese electric vehicle (EV) giant BYD, the world’s second-largest EV maker after Tesla, has signed a nearly USD 1 bln investment agreement with Turkey’s Industry and Technology Ministry to open a plant in the country. The agreement includes the establishment of an electric and rechargeable hybrid car production facility with an annual capacity of 150,000 vehicles and an R&D center for sustainable mobility technologies. The facility is expected to start production by the end of 2026.
While the exact location of the facility has not been disclosed, earlier reports suggested it will be in the western Manisa province. This investment comes shortly after the EU imposed provisional tariffs of up to 38pct on Chinese EVs, citing unfair competition due to state subsidies.
Turkish-made cars benefit from advantageous access to the EU market under a customs union established in 1995. Turkey has a robust automotive industry, with major manufacturers like Hyundai, Toyota, Renault, and Ford operating in the country, producing approximately 1.5 mln vehicles last year. The EU is Turkey’s primary export market for automobiles.
Additionally, BYD will benefit from new Turkish investment incentives, allowing the company to bypass a new 40pct tariff on electric vehicle imports.
