China’s biggest electric car maker, BYD, has made a significant move by agreeing to a $1 billion deal to establish a manufacturing plant in Turkey. This decision marks a strategic expansion outside of its home country and is expected to have far-reaching implications.
The new plant in Turkey will have the capacity to produce up to 150,000 vehicles annually, as reported by Turkish state news agency Anadolu. This development is set to create around 5,000 jobs and commence production by the end of 2026.
The deal was officially signed at an event in Istanbul, attended by President Recep Tayyip Erdogan and BYD’s chief executive Wang Chuanfu. While BYD has not provided further details on the agreement, this move comes at a crucial time for Chinese EV makers facing mounting pressure in the European Union and the US.
Last week, the EU took action to protect its motor industry by imposing higher tariffs on Chinese EVs. BYD, in particular, faced an additional tariff of 17.4% on vehicles shipped from China to the EU, on top of the existing 10% import duty. However, Turkey’s inclusion in the EU’s Customs Union allows vehicles manufactured in the country to bypass these extra tariffs.
In response to the competitive landscape, the Turkish government has also implemented a 40% tariff on imports of Chinese vehicles to support its local car manufacturers. This move aligns with similar actions taken by the US, where President Joe Biden recently increased tariffs on Chinese-made electric cars and other goods to protect domestic jobs.
BYD, with backing from renowned US investor Warren Buffett, is currently the world’s second-largest EV company, trailing behind Elon Musk’s Tesla. The company’s expansion efforts include the establishment of manufacturing plants in Hungary, Thailand, and plans for a facility in Mexico.
With the opening of an EV plant in Thailand and the upcoming manufacturing plant in Turkey, BYD is solidifying its presence in key global markets and reinforcing its position as a leading player in the electric vehicle industry. This strategic move not only signifies BYD’s commitment to international growth but also highlights the evolving dynamics of the global electric car market.
