Chinese electric vehicle giant BYD has signed a landmark $1 billion investment agreement with Turkey, marking a significant step in its global expansion strategy and potentially reshaping the European EV market landscape. The deal, signed with Turkey’s Ministry of Industry and Technology, will see BYD establish a production facility with an annual capacity of 150,000 electric and hybrid vehicles, along with a research and development center focused on sustainable mobility technologies.The new facility, expected to start production by the end of 2026, will create up to 5,000 direct jobs and is strategically positioned to serve both the Turkish and European markets. This move is widely seen as a clever maneuver by BYD to circumvent the European Union’s recent imposition of tariffs of up to 37.6% on Chinese-built EVs. By manufacturing in Turkey, which has a customs union agreement with the EU dating back to 1995, BYD can export vehicles to the European market without facing these punitive tariffs.The investment has been warmly welcomed by Turkish officials, with Industry and Technology Minister Mehmet Fatih Kacır stating that it will boost Turkey’s automotive sector and support the country’s ambition to become a leader in electric vehicle production. For BYD, the deal not only provides a gateway to the European market but also allows the company to take advantage of Turkey’s developing technology ecosystem, strong supplier base, and qualified workforce.This development comes at a time when BYD is rapidly expanding its global footprint, with recent investments in Thailand, Hungary, and Brazil. The company’s aggressive expansion and strategic positioning suggest that it is well-prepared to compete with established automakers in the European market, potentially disrupting the current dynamics of the global EV industry.
Key points
- BYD has signed a $1 billion investment agreement with Turkey to build an EV production facility and R&D center.
- The facility will have an annual capacity of 150,000 vehicles and create 5,000 jobs.
- This move allows BYD to bypass EU tariffs on Chinese EVs and expand its presence in the European market.
- The investment is seen as a significant boost to Turkey’s automotive sector and its goal of becoming a leader in EV production.
