- BYD recently said it’s interested in a second European factory.
- Turkey is also speaking with SAIC and Great Wall about new manufacturing facilities.
- The country is set to impose a 40% customs duty on electric vehicles built in China.
BYD and Chery could make significant factory investments in Turkey as Chinese car manufacturers continue to expand around the world and grow their sales in Europe.
Turkey’s Minister of Industry and Technology, Fatih Kacir, recently confirmed the government is having discussions not only with BYD and Chery but also with SAIC and Great Wall. “We would like to complete the talks as soon as possible. We have come a long way with both of them,” he said.
Read: China’s Chery May Build Cars In Spain At Old Nissan Plant
Establishing factories in Turkey could be hugely beneficial for Chinese carmakers as Turkey has a customs union agreement with the European Union. BEVs are also selling well in the local market itself and accounted for 7.5% of all new car sales in 2023, a figure that’s expected to jump to around 30.4% in 2032.
The managing director of BYD Europe, Michael Su, recently said the company is interested in a second European factory that would support the site it’s currently building in Hungary. Bloomberg notes that additional European investments could help Chinese firms avoid potential tariffs they could be hit with after an EU probe into state subsidies they have reportedly received.
Additionally, Turkey is set to impose an additional 40% customs duty on electric vehicles made in China, in a bid to protect its sole local EV maker, TOGG.
Kacir added that should a Chinese automaker decide to open a new car plant in Turkey, it will bring with it “privileged opportunities for battery investments as well.”
BYD’s Hungarian assembly plant will be able to produce approximately 200,000 vehicles annually. While that’s a lot, it won’t be enough if the company wants to fulfill its goal of becoming a leader EV maker in Europe by 2030. A site in Turkey could be a compelling option because of the nation’s location connecting Asia and Europe.
