China’s BYD, the world’s largest electric vehicle producer, has partnered with the Turkish Industry and Technology Ministry to invest in Türkiye. This collaboration will see BYD construct a factory capable of producing 150,000 vehicles annually, alongside a mobility and R&D center, with a total investment of $1 billion. Production is anticipated to commence by late 2026, generating 5,000 direct jobs. The agreement was formalized in a ceremony attended by Turkish President Recep Tayyip Erdogan, Industry and Technology Minister Mehmet Fatih Kacir, and BYD’s Chairman and CEO Wang Chuanfu. Additionally, Türkiye has imposed a 40% tax on imported vehicles from China to bolster domestic production and attract investments, a move mirrored by the EU Commission, which announced additional tariffs on Chinese electric vehicles. BYD’s substantial investment aligns with Türkiye’s strategic aim to position itself as a hub for international investments and innovation in green technology. Minister Kacir emphasized that this investment would enhance Türkiye’s automotive industry by fostering the production of high domestic added-value vehicles. Türkiye, the third-largest automobile manufacturer in Europe, prioritizes the transition to environmentally friendly electric vehicles, a crucial sector for Turkish exports. Vice President Cevdet Yilmaz highlighted that the investment reflects Türkiye’s favorable investment climate and will contribute significantly to exports and reduce the current account deficit. Trade Minister Omer Bolat pointed out that BYD’s investment underscores the opportunities in Türkiye’s automotive production sector, supported by an attractive investment environment, a qualified workforce, and extensive trade agreements. In a related development, another Chinese automaker, SWM, also announced plans to establish a factory in Türkiye.
