Chinese electric-car giant, BYD, has signed a landmark deal to establish a manufacturing plant in Turkey, worth $1 billion.
The facility, expected to be operational by 2026, will produce up to 150,000 vehicles annually and create approximately 5,000 jobs.
The agreement was signed in Istanbul, attended by Turkish President Recep Tayyip Erdogan and BYD CEO Wang Chuanfu. This move marks BYD’s expansion into Europe, amidst growing pressure from the EU and US. The EU recently imposed a 17.4% tariff on Chinese EVs, while the US introduced a 100% border tax on electric cars from China.
Turkey’s membership in the EU’s Customs Union allows vehicles produced in the country to avoid additional tariffs when exported to the EU. The Turkish government has also imposed a 40% tariff on imports of Chinese vehicles, supporting local car makers.
BYD, backed by Warren Buffett, is the world’s second-largest EV company after Tesla. The company is rapidly expanding its production facilities globally, with plans to build plants in Hungary, Thailand, and Mexico. The Turkish plant will be its first in the region, bolstering the country’s automotive industry and creating new job opportunities.
