BYD and Chery Eyeing Turkish Market for New Manufacturing Facilities

Chinese automakers BYD and Chery are considering significant investments in Turkey as part of their global expansion strategy. Turkey, known for its growing electric vehicle market, is also in talks with SAIC and Great Wall for potential new manufacturing facilities.

Interest in European Expansion

BYD has expressed interest in establishing a second European factory to complement its existing site in Hungary. This move comes as Chinese car manufacturers seek to strengthen their presence in Europe and increase sales in the region.

Turkey’s Growing EV Market

Turkey’s Minister of Industry and Technology, Fatih Kacir, confirmed ongoing discussions with BYD, Chery, SAIC, and Great Wall. The country’s customs union agreement with the EU makes it an attractive location for Chinese carmakers looking to expand into Europe. Electric vehicles accounted for 7.5% of new car sales in Turkey in 2023, a figure expected to rise to 30.4% by 2032.

Protective Measures

To safeguard its local EV industry, Turkey plans to impose a 40% customs duty on electric vehicles manufactured in China. This move aims to support Turkey’s sole local EV maker, TOGG.

Potential Benefits

Opening a new manufacturing plant in Turkey could provide Chinese automakers with strategic advantages, including opportunities for battery investments. With its central location connecting Asia and Europe, Turkey offers a compelling option for companies like BYD looking to expand their production capacity.