BYD to set up USD1B EV plant in Turkey

(MENAFN) Chinese electric car manufacturer BYD has signed a significant agreement with the Turkish government to construct a USD1 billion factory in Turkey. This new facility is planned to produce 150,000 vehicles annually. Turkish Industry and Technology Minister Mehmet Fatih Kacir announced on Monday that the envisioned facility will focus on the production of rechargeable hybrid electric vehicles and will include a research and development center for mobility technologies. The project, with an investment of around USD1 billion, aims to start production by the end of 2026 and is expected to directly employ up to 5,000 people.

Minister Kacir shared photos on the X platform depicting Turkish President Recep Tayyip Erdogan meeting with BYD CEO Wang Chuanfu during the signing ceremony for the factory agreement. This development comes amid the European Union's recent decision to increase tariffs on Chinese electric vehicles in an effort to protect its own auto industry. Kacir noted that the agreement might help investors, including BYD, gain easier access to European markets under the customs union between Turkey and the European Union.

The agreement results from ongoing discussions with Chinese officials following Kacir's visit to China in December 2023. BYD had committed to building a factory for core components of new energy vehicles. This initiative is expected to enhance production capacity at BYD's plant in Shenzhen, in southern China. The collaboration between Turkey and BYD marks a significant step in the expansion of electric vehicle manufacturing and the strengthening of economic ties between the two nations. 

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