According to the Turkish Ministry of Industry and Technology, both sides signed the agreement on Monday in the presence of President Recep Tayyip Erdogan. Therefore, BYD will invest about one billion US dollars (about 920 million euros) in Turkey to build a production facility with about 5,000 jobs. There is also a research and development center for mobility technologies. BYD does not want to waste too much time: the launch will be celebrated in two and a half years.
“Thanks to Turkey’s unique advantages, such as its growing technology ecosystem, strong supplier base, prime location and skilled workforce, BYD’s investment in this new production facility will further enhance the brand’s local manufacturing capabilities and increase logistical efficiency,” BYD said in a statement. . “Our goal is to reach consumers in Europe by meeting the growing demand for NEVs in the region.”
Mehmet Fatih Kacır, Minister of Industry and Technology, commented: “We are in a historic day for our automotive industry. We took the first step of a huge investment in our country.”
It is not yet official where exactly the project will be created. However, the pro-government Turkish newspaper “Yeni Safak” reports that BYD has allocated an area in Manisa province (to the north of the port of Izmir) for the site. Volkswagen is said to have been interested in this property a few years ago.
The news that BYD wants to build cars in Turkey had already leaked. Bloomberg reported on Friday that Turkey would enter into such a deal with BYD. The new plant eases BYD’s access to the European Union amid the threat of special tariffs, as Turkey and the EU are linked by a customs union that has existed since 1995. Other carmakers also see it as a strategic location advantage. These include manufacturers Fiat, Renault, Ford, Toyota and Hyundai, which have been producing in Turkey for decades
According to the plans drawn up by the EU, BYD should expect tariffs of 27.4% (10% normal duty, 17.5% special duty) on its electric cars when imported from China. This is intended to offset subsidies that distort competition in China. Tariffs vary from manufacturer to manufacturer. It still is them for now. Talks with the Chinese government are ongoing.
But just the fact that the tariffs are looming could have accelerated BYD’s plans for a second electric car plant in Europe. Turkey attracts with relatively low labor costs. And with China-friendly policies. The government in Ankara announced on Friday that it was withdrawing plans, announced nearly a month ago, to impose additional tariffs of 40 percent on all vehicles from China on the grounds that it wanted to boost investment.
As is known, BYD’s first European factory will be built in Hungary and is scheduled to be put into operation at the end of 2025. Stella Li, Vice President of BYD for Europe and America, said that a second production unit will also be built on the continent. confirmed in June. Europe is just one of many areas of expansion for the Chinese. Last week Open The manufacturer has an electric car plant in Thailand and a plant in Uzbekistan, where two plug-in hybrid models roll off the production line. Additionally, BYD owns a former Ford factory in Brazil has taken over and is looking for a location for a factory in Mexico.
Similar to the planned factory in Turkey, the manufacturer’s Chinese management is not primarily looking at the local market there with the planned factory in Mexico, but the US: Together with Canada, these two countries form the NAFTA free trade area, with which BYD manufactures its products in Mexico Cars could be imported duty-free into the US and Canada. BYDs made in China will from August 1 on import into the US subject to 100 percent duty, Canada is now considering such a step.
Reuters.com, dailysabah.com, x.com, bnnbloomberg.ca, sanayi.gov.tr