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BYD Invests $1 Billion to Build a Factory and Overseas R&D Center in Turkey
Published: 7.15.2024
According to Turkish Ministry of Industry and Technology, BYD has signed an agreement with the Turkish government to invest in the plant, under which BYD will invest about $1 billion in the plant to produce 150,000 electric and hybrid vehicles per year and build a research and development center.
BYD aims to reach European customers to improve its "logistical efficiency." The Turkish plant is expected to start production at the end of 2026 and will create up to 5,000 jobs. BYD Chairman Wang Chuanfu and Turkish Minister of Industry and Technology Mehmet Fatih Kacir signed the agreement.
It is worth noting that Turkey is not a member of the European Union, but under the "Customs Union" established in 1995, Turkish-made cars enjoy preferential treatment in entering the European Union.
Last week, the EU pushed forward plans to impose temporary tariffs on electric vehicles imported from China, adding a 17.4% tariff on top off the 10% basic import tariff. If BYD chooses to export to the EU from Turkey, the tariff rate will be significantly lower.
On July 5, Turkey announced that it would cancel the plan to impose a 40% tariff on all vehicles from China citing its efforts to encourage investment and attract more Chinese automakers to build factories in Turkey.
So far, BYD has established factories in nine countries outside Turkey. In addition to building factories internationally, BYD has repeatedly increased its investment in the Shenzhen-Shantou Special Cooperation Zone in recent years.
At the 2024 Shenzhen Shenshan Special Cooperation Zone Industry Investment Conference, BYD stated that it had signed a contract with the Shenzhen-Shantou Special Cooperation Zone to complete the BYD Automotive Industrial Park Phase III project, with a total investment of RMB 6.5 billion to build a battery pack line and a new energy vehicle core parts factory.
