Turkish President Recep Tayyip Erdogan has unveiled a significant investment package totaling $9.5 billion aimed at advancing the country’s future technologies, including $5 billion dedicated to electric vehicle (EV) production and $4.5 billion for battery manufacturing.
Erdogan’s announcement, reported by Reuters, outlines plans to ramp up Turkey’s EV production to one million units annually. The $5 billion investment is part of a broader $30 billion incentive program targeting various high-tech sectors.
BYD to Build $1 Billion EV Plant in Turkey, Boosting Access to European Markets
The Turkish President highlighted Turkey’s growing appeal to electric car manufacturers, citing BYD’s recent commitment to establish a $1 billion production facility in the country. The factory, slated to commence operations by the end of 2026, will have an annual production capacity of 150,000 vehicles. This plant will be BYD’s second facility focused on the European market, following its Hungarian operation.
Erdogan emphasized Turkey’s strategic role in the electric mobility sector, stating, “With our call for batteries, we aim to become a regional production base by building a capacity of 80 gigawatt hours by 2030.”
The investment package also includes funds for solar cells, chips, and wind energy, with electric vehicles and batteries representing nearly one-third of the total investment. The Turkish government anticipates that the $30 billion in state aid will attract approximately $20 billion in private investment. Further details on these investments are expected to be released soon.
Turkey has long been a key production hub for car manufacturers targeting the European market, bolstered by a customs union with the EU established in 1995 and relatively low local production costs. In addition to BYD, companies like Fiat, Renault, Ford, Toyota, and Hyundai have established production facilities in Turkey.
Turkey’s President Takes Delivery of First Togg T10X SUV, Kicking Off Domestic EV Production
In the electric vehicle sector, Turkey is also represented by Togg, a Turkish EV manufacturer whose debut model has been marketed exclusively in Turkey, with plans to enter the German market this autumn.