BYD's Turkish Investment Set To Reshape Market Dynamics For Chinese Automakers

7/18/2024 7:20:49 PM

(MENAFN- AzerNews) BYD's investment decision in Turkiye will also impact other Chinese brands. OSD President Cengiz Eroldu stated that Turkiye's total automotive capacity will reach 2.3 million units with BYD's new $1 billion investment, adding 150 thousand vehicles in Manisa. He remarked, "Other players may follow BYD."

The Automotive industry Association (OSD) celebrated its 50th anniversary in Turkiye with a gala dinner attended by members and automotive journalists. Before the gala, OSD President Cengiz Eroldu addressed the automotive press, evaluating BYD's investment.

"The way has been opened for new brands," said the OSD President, noting that BYD's investment would benefit other players in Turkiye. He continued, "Competition will keep all players vigorous. Some technology transfer from China will also occur. This investment signals that government taxes are effective, accelerating investment decisions. Other players may enter after BYD. With market expansion, many more players may consider entering. Additional taxes on Chinese vehicles have raised prices by 20-30%, potentially impacting market size."

Eroldu also discussed domestic sales figures, noting a decrease in market share from 39% to 32% this year. He projected exports of 1.07 to 1.12 million units, anticipating a 5-10% increase by year-end.

In 50 years, Turkiye's automotive industry has produced 32 million vehicles, exporting 19 million. Eroldu highlighted industry growth, with investments totaling $11 billion in the past decade, generating a current account surplus of $65 billion.

Regarding BYD's potential impact, Eroldu estimated a turnover of €3.8 billion if production focuses on electric or hybrid vehicles, emphasizing significant economic implications for the domestic market.

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