Byd signed a $1 billion deal to build a plant in Turkey

Chinese electric car giant BYD will invest $1 billion in Turkey to build a factory with an annual capacity of 150,000 electric vehicles, which is expected to start production in 2026. The move will help BYD avoid anti-subsidy tariffs imposed by the European Union.

In the presence of Turkish President Recep Tayyip Erdogan, BYD CEO Wang Chuanfu and Turkish Minister of Industry and Technology Mehmet Fatih Kacir held a signing ceremony in Istanbul on Monday (July 8).

Cassirer posted a photo of the signing ceremony on social media X the same day. "We envisage BYD will set up an electric and rechargeable hybrid vehicle production facility in China with an annual output of 150,000 vehicles and a mobility technology research and development centre with an investment of about $1bn," he captioned.

Cassirer said the plant is expected to be operational by the end of 2026 and could provide 5,000 jobs.

He also said that given Turkey's customs union with the EU, the partnership could help investors including BYD gain access to the European market.

The customs union between Turkey and the EU has been in place since 1995. Under this relationship, Turkish-made cars enjoy preferential tariff treatment when entering the EU, and the Marmara region around Istanbul has become one of the major centers of the world's automotive industry.

In the 1970s, automakers including Fiat and Renault opened factories in Turkey, while others such as Ford, Toyota and Hyundai took advantage of Turkey's location at the crossroads of Europe, Asia and the Middle East.

Yeni Safak, a pro-government Turkish newspaper, said land previously allocated to Volkswagen in Manisa, north of the western city of Izmir, would be transferred to BYD.

Agence France-Presse reported that BYD's plant in Turkey will help BYD avoid temporary anti-subsidy tariffs imposed by the European Union. The EU imposed provisional tariffs of up to 37.6% on Chinese electric vehicles, of which BYD added 17.4%, effective from Friday (July 5) and will be implemented for nearly four months.

In addition, Zafer Sirakaya, deputy chairman of Turkey's ruling Justice and Development Party, told Reuters last week that Guangzhou Automobile Group was in talks with Turkish Automotive United Holding Group (TOGG) about the possibility of forming a joint venture.