China’s electric vehicle giant BYD signed a one-billion-dollar agreement with Turkey to open a plant in a move to avoid new EU tariffs. The signing ceremony in Istanbul was overseen by President Erdogan and involved the CEO of BYD and Turkey’s industry minister. The plant will have a capacity of 150,000 vehicles per year and create 5,000 jobs.
Turkish-made cars have been offered favorable access to the EU since 1995. The Marmara region near Istanbul has become a hub for the automobile industry, with major car manufacturers already established there. BYD’s investment in Turkey will help it enter the European market more easily by bypassing tariffs on Chinese vehicles.
BYD is a leading manufacturer of electric vehicles with advanced technology. With potential sales of 20-25,000 vehicles in Turkey and 75,000 for export to the EU, the company plans to take advantage of investment incentives in Turkey to avoid tariffs and increase its market share in Europe.
China’s dominance in electric vehicles has led to global expansion by manufacturers like BYD, who are also opening factories in Hungary and Thailand. The move comes after the EU imposed tariffs on Chinese EVs, potentially sparking a trade war with China.