China’s leading electric car manufacturer, BYD, has made a significant move by agreeing to a $1 billion deal to establish a manufacturing plant in Turkey. This decision comes as part of the company’s strategy to expand its operations beyond its home country.
The new plant in Turkey is expected to have the capacity to produce up to 150,000 vehicles annually, according to Turkish state news agency Anadolu. This development is projected to create around 5,000 jobs and commence production by the end of 2026.
The deal was officially signed at an event in Istanbul, attended by Turkish President Recep Tayyip Erdogan and BYD’s chief executive Wang Chuanfu. Despite a request for further details on the deal, BYD has not yet responded to the BBC.
This announcement comes at a crucial time for Chinese EV makers, as they face mounting pressure in the European Union and the United States. Recently, the EU implemented measures to protect its motor industry by imposing higher tariffs on Chinese EVs. BYD, in particular, was hit with an additional 17.4% tariff on vehicles shipped from China to the EU, on top of the existing 10% import duty.
Turkey’s inclusion in the EU’s Customs Union allows vehicles manufactured in the country and exported to the bloc to bypass the additional tariff. The Turkish government has also taken steps to support its own car manufacturers by imposing a 40% tariff on imports of Chinese vehicles.
In a similar vein, US President Joe Biden has increased tariffs on Chinese-made electric cars, solar panels, steel, and other goods. The White House cited unfair policies as the reason behind these measures, aiming to safeguard American jobs.
BYD, with the backing of renowned US investor Warren Buffett, holds the position of the world’s second-largest EV company after Tesla. The company has been actively expanding its production facilities outside of China, with plans to build a manufacturing plant in Hungary and Thailand, as well as a future plant in Mexico.
The establishment of the manufacturing plant in Turkey marks another milestone in BYD’s global expansion efforts, solidifying its presence in key markets and contributing to job creation and economic growth in the regions it operates in.
