China's BYD inks agreement to start up electric vehicle plant in Turkey
Date
7/18/2024 8:49:19 AM
(MENAFN) BYD, China's prominent electric vehicle (EV) manufacturer, has finalized plans to establish a manufacturing facility and research center in Turkey, marking a strategic move to evade newly imposed European Union tariffs on Chinese EV imports. The agreement, inked in Istanbul between BYD's CEO Wang Chuanfu and Turkey's industry and technology Minister Fatih Kacir under the auspices of President Recep Tayyip Erdogan, signifies a significant investment estimated at around one billion dollars.
According to Turkey's industry and technology ministry, the facility will have an annual production capacity of 150,000 vehicles, reinforcing Turkey's position as a pivotal hub in the global automotive industry. The region around Istanbul, known as the Marmara region, has historically attracted major automakers such as Fiat, Renault, Ford, Toyota, and Hyundai due to its strategic location bridging Europe, Asia, and the Middle East.
The move by BYD comes in response to the European Union's recent imposition of provisional tariffs as high as 38 percent on Chinese EVs, citing unfair competition due to state subsidies. Turkish-made vehicles currently benefit from favorable access to the European Union market under a long-standing customs union agreement, further enhancing BYD's strategic calculus in choosing Turkey as its new manufacturing base.
The decision to allocate land originally earmarked for Volkswagen in Manisa, near Izmir in western Turkey, to BYD underscores the country's attractiveness as an investment destination in the automotive sector. Industry analysts, including independent consultant Levent Taylan, recognize BYD's stature as a global leader in EV manufacturing, known for its advanced technology and high manufacturing standards.
As BYD prepares to ramp up production in Turkey, the development is poised to bolster the country's industrial landscape while navigating geopolitical trade dynamics affecting the global automotive market. The establishment of the new plant underscores BYD's commitment to expanding its global footprint and enhancing its competitive edge in the rapidly evolving EV industry
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