- The new plant will produce 150,000 vehicles per year, starting in 2026.
- BYD can avoid EV tariffs in Europe by manufacturing vehicles in Turkey.
- Over 1.4M vehicles were built in Turkey last year by brands like Renault, Hyundai, and Ford.
Chinese automotive juggernaut BYD is continuing its global expansion and will build a new electric and plug-in hybrid vehicle factory in Turkey. This move will significantly improve the brand’s access to the European Union by allowing it to bypass recent import tariffs on Chinese-made EVs.
BYD will invest approximately $1 billion into the site, expected to be in Turkey’s Manisa province. It will have the capacity to manufacture 150,000 vehicles a year and is slated to begin production at the end of 2026. The site will employ roughly 5,000 people.
Read: Turkey Slaps 40% Import Tariff On Chinese Cars
Following a recent European Commission investigation, BYD will face 27.5% tariffs on EVs it builds in China and sells in Europe. In addition, Turkey recently imposed an additional 40% tariff on all Chinese vehicles to protect its own car industry, as well as Togg, the nation’s own EV manufacturer.
Fortunately for BYD, Turkey is part of the EU’s Customs Union, meaning vehicles it builds there can be exported to Europe without additional tariffs.
The deal was announced on Monday at an event hosted by Turkish President Recep Tayyip Erdogan in Istanbul. It’s unclear what proportion of cars produced at the plant will be EVs versus PHEVs, but this will likely depend on consumer demand.
In a statement, BYD said that because of Turkey’s “unique advantages such as its developing technology ecosystem, strong supplier base, extraordinary location, and skilled workforce, BYD’s investment in this new production facility will further develop the brand’s local production capabilities and increase logistical efficiency.”
General manager of automotive consultancy EBS, Erol Sahin, believes that Turkey’s recent move to impose an extra 40% tariff on all Chinese vehicles, regardless of powertrain, convinced BYD to make the investment, reports Nikkei Asia.
Late last week, President Erdogan told Chinese leader Xi Jinping that this 40% tariff would be waived for brands that invest in Turkish production, which is exactly what BYD is now doing.
More than 1.4 million vehicles were produced in Turkey last year, with roughly 70% being passenger cars from brands including Hyundai, Toyota, Renault, and Ford. Interestingly, a foreign automaker has not established a new car factory in the country since 1997, when Honda opened a plant there.
