Chinese electric vehicle manufacturer BYD has announced plans to open a significant production facility in Turkey, a strategic move aimed at circumventing the recently heightened import tariffs imposed by the European Union on Chinese electric cars. The establishment of this plant marks a major investment of $1 billion (approximately €920 million).
The formal agreement for the new factory was signed in a ceremony held in Istanbul, attended by prominent figures including BYD Chairman Wang Chuanfu and Turkish Minister of Industry and Technology Fatih Kacir. Turkish President Recep Tayyip Erdogan was also present, highlighting the importance of this development for both the Turkish economy and BYD’s expansion strategy.
The upcoming facility is designed to produce 150,000 vehicles annually, significantly boosting BYD’s production capabilities. In addition to the manufacturing plant, an advanced research and development center will be established on-site, underscoring BYD’s commitment to innovation and technological advancement in the electric vehicle sector. The project is also set to create approximately 5,000 jobs, providing a substantial economic boost to the local community.
This strategic move by BYD comes in response to the European Union’s recent decision to increase import tariffs on Chinese electric vehicles, a measure aimed at protecting the EU’s domestic automotive industry. For BYD, the new tariff rate has been set at 17.4 percent, a significant hurdle for the company’s European market aspirations. By setting up production in Turkey, BYD can take advantage of Turkey’s customs union agreement with the EU, thereby facilitating smoother and more cost-effective access to the European market.
The decision to invest in Turkey highlights BYD’s strategic adaptability and its commitment to expanding its global footprint despite regulatory challenges. This move is expected to strengthen economic ties between China and Turkey while providing BYD with a crucial gateway to the lucrative European market.