China's BYD, world's biggest EV maker, invests $1B in Turkish plant
In a post on the social media platform X on Monday, Turkey’s Vice President Cevdet Yilmaz confirmed that BYD is expected to begin production of vehicles in the new factory at the end of 2026 and that the facility will provide around 5,000 direct jobs.
Chinese electric vehicle firm BYD has agreed to invest $1 billion to set up a manufacturing plant in Turkey that will churn out up to 150,000 EVs a year.
In a post on the social media platform X on Monday, Turkey’s Vice President Cevdet Yilmaz confirmed that BYD is expected to begin production of vehicles in the new factory at the end of 2026 and that the facility will provide around 5,000 direct jobs.
“We expect this investment to make significant contributions to our exports in the medium term and to further reduce our already falling current account deficit,” Yilmaz added.
Dünyanın en büyük elektrikli araç üreticisi Çin menşeli BYD firmasının ülkemizde yatırım yapmasına yönelik anlaşma, bugün Cumhurbaşkanımız Sayın @RTErdogan riyasetinde, Sanayi ve Teknoloji Bakanımız Sayın @mfatihkacir ve BYD Yönetim Kurulu Başkanı Sayın Wang Chuanfu tarafından…
— Cevdet Yılmaz (@_cevdetyilmaz) July 8, 2024
Al-Monitor has contacted BYD for comment.
BYD sells around 3 million vehicles a year, making it the world’s leading EV company. In comparison, Tesla sold 1.81 million vehicles globally in 2023.
The Chinese firm has run into a few recent challenges amid increasing scrutiny of China-made EVs in the European Union and the United States as global trade wars intensify.
Last week, the EU hiked tariffs on Chinese EVs in order to safeguard the competitiveness of the bloc’s automotive industry. BYD now faces an additional 17.4% tariff on top of existing 10% import duty on its vehicles shipped to the EU.
Despite being part of the EU Customs Union, Turkey — not being a member of the bloc — is exempt from these tariffs. The new plant will allow BYD to make cars there and then export them to the bloc without the costly tariffs.
SWM Motor applies for Turkish factory
Separately, Italian automaker SWM Motor, owned by Chinese automotive giant Shineray Group, has applied to build a factory in Turkey, the state news agency Anadolu reported Monday.
According to a statement from ATMO Group, the representative of SWM Motor in Turkey, the firm sees the Turkish market, which it entered at the end of last year, as key to its global growth strategy.
“As ATMO Group, we are committed to investing in Turkiye and developing more projects. Our workforce in Turkiye has doubled compared to last year. Our revenue continues to grow annually, and we have a long-term development plan in place,” ATMO Group CEO Anton Chernov said in the company statement.
Chernov added that if the manufacturing facility is approved, it will have an annual production of over 50,000 vehicles.
“This facility will cater to the Turkish market and focus on exports to Balkan countries and other EU markets,” he said.
Chernov added that recent regulatory changes in Turkey have allowed the company to review its business model and include local production options.
“Turkiye offers high potential for long-term business development. We have built a professional and robust dealer network, and new partners continue to join us,” he added.
The Turkish domestic market for EVs is expanding, with 65,562 fully electric vehicles sold in the country last year, according to Anadolu, a more than 800% increase over 2022 sales.
