Chinese EV manufacturer BYD to establish factory in Turkey

(MENAFN) China's prominent electric vehicle (EV) manufacturer, BYD, is set to establish a factory in Türkiye, according to a government source speaking to a French news agency on Monday. The source indicated that President Recep Tayyip Erdogan would make the official announcement detailing the plans.

This development comes shortly after the European Union imposed additional provisional tariffs, ranging up to 38 percent, on Chinese EVs. This decision followed an investigation that concluded Chinese state subsidies were unfairly undercutting European competitors in the EV market.

Turkish-produced cars benefit from favorable access to the EU market through a longstanding customs union established in 1995. The Marmara region, centered around Istanbul, has emerged as a pivotal hub in the global automobile industry. Since the early 1970s, major automakers such as Fiat and Renault have established manufacturing plants there, with others like Ford, Toyota, and Hyundai following suit. Türkiye's strategic location at the crossroads of Europe, Asia, and the Middle East has enhanced its appeal as an automotive production center.

China has been at the forefront of the global transition to electric vehicles, with projections indicating that nearly one in three cars on Chinese roads could be electric by 2030, according to the International Energy Agency's Global EV Outlook. Chinese EV manufacturers have increasingly expanded their export activities, prompting various countries to implement protective measures to safeguard their domestic automakers.

In response to market dynamics and tariff implications, Chinese companies like BYD are diversifying their production footprint internationally. BYD had previously announced plans to establish its inaugural European factory in Hungary.

Amidst these developments, Beijing has expressed concerns that the EU's tariff decisions could escalate into a broader trade conflict.

MENAFN09072024000045015839ID1108421288