Wednesday, July 24, 2024

BYD to Build $1 Billion EV Plant in Turkey, Boosting Access to European Markets

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Chinese electric vehicle giant BYD has agreed with the Turkish government to construct a $1 billion production facility in Turkey, capable of producing 150,000 vehicles annually, Turkey’s industry and technology minister announced on Monday.

“We envisage that BYD will establish an electric and rechargeable hybrid car production facility with an annual capacity of 150,000 vehicles and an R&D center for mobility technologies in our country, with an investment of approximately $1 billion,” said Minister Mehmet Fatih Kacir.

The facility is expected to commence production by the end of 2026 and will create direct employment opportunities for up to 5,000 people.

Kacir highlighted the strategic advantage of the deal amid the European Union’s recent tariff hike on Chinese electric vehicles, aiming to protect its domestic industry. He emphasized that Turkey’s customs union with the EU could facilitate easier market access for investors, including BYD, the world’s largest EV manufacturer.

According to China’s state-backed Securities Times, BYD plans to establish a factory for core components of new energy vehicles, supporting the production capacity of its existing Shenzhen facility, although the report did not specify Turkey.

Last week, a senior official from Turkey’s ruling AK Party disclosed ongoing discussions between Chinese automaker Guangzhou Automobile Group (601238.SS) and Turkish EV manufacturer TOGG regarding a potential joint production venture. GAC’s leadership is scheduled to visit TOGG in Turkey later this month, according to Zafer Sirakaya of the AK Party.

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