China’s EV giant BYD has made a strategic move by signing an agreement with Turkey to open a plant in the country, aiming to avoid new EU tariffs. The signing ceremony in Istanbul was attended by BYD’s CEO Wang Chuanfu, Turkey’s industry and technology minister Fatih Kacir, and President Recep Tayyip Erdogan.
With an investment of approximately one billion dollars, BYD will establish a production facility with an annual capacity of 150,000 vehicles and a research and development center in Turkey. This decision comes in response to the EU imposing additional provisional tariffs on Chinese EVs.
By setting up a plant in Turkey, BYD can leverage the country’s customs union with the EU and benefit from its strategic location between Europe, Asia, and the Middle East. This move will enable BYD to circumvent tariffs and potentially export 75,000 vehicles to the EU annually.
As a global leader in electric vehicles, BYD’s expansion into Turkey marks a significant step towards dominating the European market while evading trade barriers. With its advanced technology and manufacturing quality, BYD is poised to make a substantial impact on the electric vehicle industry.