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| China's BYD to Build $1bn EV Manufacturing Plant in Turkey Image credit: Xinhuanet |
China's leading electric car manufacturer BYD has signed a $1 billion deal to establish a manufacturing plant in Turkey, marking its continued global expansion. The new facility, capable of producing up to 150,000 vehicles annually, is set to begin operations by the end of 2026 and will create around 5,000 jobs, according to the Turkish state news agency Anadolu.
The agreement was finalized at an event in Istanbul attended by President Recep Tayyip Erdogan and BYD's chief executive Wang Chuanfu. This announcement comes as Chinese electric vehicle (EV) makers face increasing tariffs in the European Union and the US.
Last week, the EU imposed an additional tariff of 17.4% on Chinese EVs, on top of the existing 10% import duty, to protect its motor industry. However, Turkey's membership in the EU’s Customs Union allows vehicles manufactured there and exported to the EU to avoid these extra tariffs. Additionally, Turkey has imposed a 40% tariff on imports of Chinese vehicles to support its domestic car manufacturers.
In May, US President Joe Biden increased tariffs on Chinese-made electric cars, solar panels, steel, and other goods, including a 100% border tax on electric cars from China. The White House stated that these measures were aimed at countering unfair trade practices and protecting US jobs.
BYD, backed by US investor Warren Buffett, is the world’s second-largest EV company after Tesla. The company has been expanding its production facilities globally. At the end of last year, BYD announced plans to build a manufacturing plant in Hungary, which will be its first passenger car factory in Europe, expected to create thousands of jobs. On Thursday, BYD opened its first EV plant in Southeast Asia, located in Thailand, with an annual capacity of 150,000 vehicles and projected to create 10,000 jobs. Additionally, BYD is planning to establish a manufacturing plant in Mexico.
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