Chinese electric vehicle giant BYD has announced a $1 billion investment to establish a manufacturing plant in Turkey, with plans to produce up to 150,000 electric vehicles annually.
Turkey’s Vice President Cevdet Yilmaz confirmed the news on social media platform X, stating that production at the new facility is slated to commence by the end of 2026. The plant is expected to create approximately 5,000 direct jobs and is seen as a significant boost to Turkey’s exports, potentially aiding in further reducing the country’s current account deficit.
BYD, which boasts an annual sales volume of around 3 million vehicles, solidifies its position as the world’s leading electric vehicle manufacturer, surpassing Tesla’s 2023 global sales of 1.81 million vehicles.
The investment comes amid challenges for BYD in European and American markets, where Chinese-made EVs face heightened scrutiny amidst escalating global trade tensions. Recently, the European Union raised tariffs on Chinese EVs to safeguard the competitiveness of its automotive industry, imposing an additional 17.4% tariff on top of existing duties. However, Turkey, not being an EU member, remains exempt from these tariffs due to its status within the EU Customs Union.
The establishment of the Turkish plant will enable BYD to manufacture vehicles locally and export them to the EU without incurring these costly tariffs, enhancing its competitive edge in the European market.
In a related development, Italian automaker SWM Motor, a subsidiary of Chinese automotive giant Shineray Group, has also applied to build a factory in Turkey. The proposed facility, if approved, aims to produce over 50,000 vehicles annually, primarily targeting the Turkish and Balkan markets while focusing on exports to other EU nations.
The move underscores Turkey’s growing prominence as a strategic hub for automotive manufacturing and export, driven by favorable regulatory changes and a burgeoning domestic market for electric vehicles, which saw a remarkable 800% increase in sales in 2023 compared to the previous year.
Both BYD and SWM Motor’s investments highlight Turkey’s appeal as a pivotal player in the global automotive industry, poised to capitalize on its geographical advantage and export potential amidst evolving international trade dynamics.
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