Major Investment in Automotive Sector After 27 Years
A groundbreaking investment agreement has been signed for the world’s largest electric vehicle manufacturer, BYD, to invest in Turkey. The facility, with an estimated investment of around $1 billion, will have an annual capacity of 150,000 vehicles and will produce electric and hybrid vehicles from the end of 2026.
The investment agreement between the world’s largest electric vehicle manufacturer, BYD, and the Ministry of Industry and Technology was signed at Dolmabahçe Working Office, under the auspices of President Recep Tayyip Erdoğan. The agreement was signed by the Minister of Industry and Technology Mehmet Fatih Kacır and BYD Chairman Wang Chuanfu.
Government’s Additional Tariff on Imported Vehicles from China
The government’s decision to impose an additional 40% customs duty on vehicles imported from China prompted Chinese automotive manufacturers to consider production in Turkey. Discussions with the relevant ministry accelerated. Last week, BYD senior officials announced plans to establish a factory in Turkey with an investment of $1 billion.
Export to Europe
The Ministry of Industry and Technology announced the investment agreement in a written statement. According to the agreement, BYD plans to establish a production facility for electric and rechargeable hybrid cars with an annual capacity of 150,000 vehicles and a research and development center in Turkey with an investment of approximately $1 billion.
The facility, expected to begin production by the end of 2026, aims to provide direct employment to up to 5,000 people. BYD stated, “This new production facility investment will further develop the brand’s local production capabilities and increase logistical efficiency. We aim to reach European consumers by meeting the increasing demand for new energy vehicles in the region.”
Minister Kacır emphasized their satisfaction with BYD’s investment in Turkey, stating, “This investment decision is the result of ongoing discussions and consultations since our visit to China in December, where we witnessed BYD producing 32 patents a day with its 110,000 engineers.”
He continued, “This investment, aimed at the high local value-added production of next-generation vehicles, will strengthen our automotive sector. We see the transformation towards new-generation and environmentally friendly electric vehicles as a priority goal in the automotive sector, which is the leading export sector in Turkey with over $35 billion in annual exports. Turkey will become a leader in the transformation of the automotive sector with new investments.”
Minister Kacır highlighted that they witnessed a historic day for the Turkish automotive industry, stating, “Eight global and thirteen brands are producing in the automotive sector. Our production exceeded 1.4 million last year. Turkey is a gateway to many export markets through the Customs Union with Europe and free trade agreements with twenty-three countries.”
First Foreign Investment in Automotive Sector After 27 Years
With BYD’s signature, the Turkish automotive sector received its first direct foreign investment after 27 years. BYD’s investment is expected to positively influence other foreign investors. Other Chinese brands like Chery and MG, and SWM Motor, operating under Shineray Group and represented by ATMO Group in Turkey, have announced their applications to produce in Turkey.
