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BYD to construct USD 1 bn EV plant in Turkey: Chinese EV maker BYD has signed an agreement with the Turkish government to build a USD 1 bn EV and hybrid production plant in the country, Turkey’s Minister of Industry and Technology Mehmet Fatih Kacir said on X.
What we know: The plant — located in Manisa province — will have the capacity to produce 150k electric and rechargeable hybrid vehicles and will contain an R&D center. Production is set to begin at the end of 2026 and the project will employ up to 5k people.
Other Chinese car makers are eying Turkey too: Turkey’s EV manufacturer Togg is also reportedly negotiating a possible collaboration with Chinese carmaker Guangzhou Automobile Group (Gac Group), deputy chairman of Turkey’s AK Party told Reuters. EVs accounted for 7.5% of car sales in Turkey last year.
The agreement comes after successful talks between Turkey and China: The agreement came after months of talks between Erdogan and his Chinese counterpart Xi Jinping which kicked off last December, the statement noted. Right before announcing BYD’s project, Turkey said the country is rolling back plans to impose an additional 40% tariff on Chinese vehicles a month after announcing them, Bloomberg writes.
There could be ulterior motives: Other than serving the domestic market, the move could be a means of evading extra tariffs imposed by the EU on Chinese EV imports, especially as Turkey holds the position of largest car manufacturer in Europe and highest exports with an annual value exceeding USD 35 bn. Stakeholders can use the agreement to their advantage by entering European markets using Turkey’s customs union with the EU, Kacir said in the statement.
BYD is eyeing other markets: The auto giant is considering investments in Tunisia’s electric transport and renewables sectors. BYD is targeting 500k in EV sales overseas in 2024 and 1 mn in 2025. The automaker opened its first Southeast Asian EV plant last week in Thailand and took over one of Ford Motor’s factories in Brazil. The company is also looking for locations to build a production facility in Mexico, Reuters added. Over in Europe, BYD is building its first car factory in Hungary.
