July 9, 2024
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BYD to Build €900mn Electric Vehicle Plant in Turkey

Chinese electric vehicle manufacturer BYD is expanding its global footprint with a new €924 million manufacturing plant in Turkey, aiming to produce up to 150,000 vehicles annually while creating 5,000 jobs.
BYD to Build €900mn Electric Vehicle Plant in Turkey
P. L. - Unsplash

BYD, the world's second-largest electric vehicle (EV) maker after Tesla, has announced a significant expansion into Turkey with a €924 million investment in a new manufacturing plant. The facility, slated to begin production by the end of 2026, is expected to have an annual production capacity of up to 150,000 vehicles and create approximately 5,000 jobs.

This move comes as Chinese EV manufacturers face increasing pressure from tariffs and trade restrictions in the European Union (EU) and the US. The EU recently imposed additional tariffs on Chinese EVs, while the US has implemented a 100% border tax on electric cars from China.

Turkey's membership in the EU Customs Union offers a strategic advantage for BYD. Vehicles produced in Turkey can be exported to the EU without incurring the additional tariffs imposed on Chinese imports. Additionally, the Turkish government has implemented protective measures for its domestic car makers, imposing a 40% tariff on imported Chinese vehicles.

The new plant in Turkey is part of BYD's broader strategy to expand its global manufacturing presence. The company recently opened its first Southeast Asian plant in Thailand and has announced plans for a factory in Hungary, its first passenger car plant in Europe. BYD is also exploring the possibility of building a manufacturing plant in Mexico.

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