Turkey is nearing a potential investment agreement with Chinese automaker Chery, according to an anonymous official. This development follows Ankara’s earlier agreement with BYD, another Chinese electric vehicle manufacturer, signaling Turkey’s commitment to enhancing ties with Chinese carmakers.
The official did not disclose details about the investment discussions, including the specific financial terms or a timeline for a final agreement. This comes after Turkey announced in July that BYD would construct a $1 billion production plant in the country, designed to produce 150,000 vehicles annually.
Recent meetings between Turkish President Tayyip Erdogan and Chery International President Guibing Zhang occurred during an investment forum in Istanbul, attended by Industry and Technology Minister Mehmet Fatih Kacir.
Chery has not yet provided a response to inquiries regarding the discussions.
To encourage investment in electric and plug-in hybrid vehicle manufacturing, Turkey offers various incentives, including land allocations, tax breaks, and support for new projects. The investment program requires a minimum production capacity of 150,000 units per year and permits tariff-free sales of a specified number of vehicles in the local market.
Turkey is home to manufacturing plants for major global automotive brands such as Ford, Stellantis, Renault, Toyota, and Hyundai, with the capacity to produce up to 2 million vehicles annually, a third of which is dedicated to commercial vehicles. The Turkish government is particularly focused on attracting Chinese manufacturers to broaden its automotive sector and facilitate the shift toward electric vehicles.
Source: Reuters
