China’s BYD to Build $1 Billion Car Factory in Turkey

China’s BYD, a leading manufacturer of battery electric vehicles (BEVs) competing with Tesla, has agreed to construct a $1 billion car factory in Turkey, as announced by the Turkish government.

Agreement and Attendees:

BYD’s CEO, Wang Chuanfu, and Turkey’s Industry and Technology Minister, Mehmet Fatih Kaci, signed the agreement in Istanbul. Turkish President Recep Tayyip Erdogan followed the signing ceremony.

According to a report from the Turkish ministry, BYD representatives stated, “We aim to meet the growing demand for new-energy vehicles in the region and reach consumers in Europe.”

The announcement follows the recent implementation of provisional additional duties on imports of Chinese-made EVs into the European Union. These tariffs, ranging from 17.4% to 37.6%, are designed to curb the influx of inexpensive Chinese cars, which the EU claims benefit from unfair governmental support.

Turkey’s customs union with the EU allows vehicles to be exported to the trading bloc without tariffs. This agreement benefits BYD by enabling tariff-free exports from Turkey to the EU.

Investment and Production Plans:

According to the agreement, BYD will invest approximately $1 billion in the Turkish factory. The facility will be able to produce 150,000 electric and hybrid vehicles annually.

Additionally, a research and development center for sustainable mobility technologies will be established at the plant. The factory is expected to begin production at the end of 2026 and create up to 5,000 jobs in Turkey.

The EU recently imposed an extra 17.4% tariff on vehicles shipped from China by BYD, alongside a standard 10% duty on all car imports. Discussions between the EU and China are ongoing, but if no agreement is reached, the additional tariffs will become permanent in November.

BYD’s Previous Announcements:

In December, BYD announced plans to build an EV factory in Hungary, making it the first Chinese automaker to manufacture passenger cars in Europe. China’s BYD to Build $1 Billion Car Factory in Turkey.