BYD to Build New Electric Vehicle Factory in Turkey

Chinese automotive giant BYD is expanding its global reach with the construction of a new electric and plug-in hybrid vehicle manufacturing plant in Turkey. This strategic move will allow BYD to circumvent import tariffs on Chinese-made EVs in Europe, providing easier access to the European Union market.

Key Highlights:

• The new plant is expected to produce 150,000 vehicles annually starting in 2026.
• Manufacturing vehicles in Turkey helps BYD avoid EV tariffs in Europe.
• Turkey produced over 1.4 million vehicles last year, including brands like Renault, Hyundai, and Ford.

Investment and Production Details:

BYD will invest around $1 billion in the new facility located in Turkey’s Manisa province. The plant will have the capacity to manufacture 150,000 vehicles per year and is scheduled to commence production by the end of 2026, creating job opportunities for approximately 5,000 people.

With Turkey being part of the EU’s Customs Union, vehicles produced at this new plant can be exported to Europe without facing additional tariffs, providing a significant advantage for BYD.

Market Impact and Future Prospects:

The announcement of this deal was made during an event hosted by Turkish President Recep Tayyip Erdogan in Istanbul. While the exact ratio of EVs to PHEVs to be produced at the plant is not yet clear, it is expected to align with consumer demand.

BYD highlighted Turkey’s technological ecosystem, strong supplier base, strategic location, and skilled workforce as key factors influencing their decision to invest in local production capabilities, enhancing logistical efficiency.

Industry Expert Insights:

Erol Sahin, general manager of automotive consultancy EBS, believes that Turkey’s recent imposition of a 40% tariff on all Chinese vehicles prompted BYD’s investment. President Erdogan’s commitment to waive this tariff for brands investing in Turkish production further incentivized BYD’s decision.

Despite the challenges posed by tariffs, Turkey remains a significant player in the automotive industry, with over 1.4 million vehicles produced last year. The establishment of this new plant marks a milestone in attracting foreign automakers to invest in local production.