BYD, China’s leading electric vehicle (EV) manufacturer, has signed an agreement with Türkiye’s Ministry of Industry and Technology to establish a $1 billion factory in the country. This facility, capable of producing 150,000 vehicles, will also house a mobility and research and development (R&D) centre.
Scheduled to commence production by the end of 2026, the BYD Türkiye factory is anticipated to generate 5,000 direct jobs within the country. The agreement was formalised in a ceremony attended by President Recep Tayyip Erdogan, Minister of Industry and Technology Mehmet Fatih Kacir, and BYD Chairman and CEO Wang Chuanfu.
“We expect this investment to significantly bolster our exports in the medium term and further reduce our already declining current account deficit,” Türkiye Vice President Cevdet Yilmaz remarked.
Earlier this week, Türkiye announced an additional 40% tax on vehicle imports from China to boost domestic production and encourage investments. The European Union Commission has also announced additional tariff on EVs imported from China. The deal with BYD could potentially facilitate access to European markets for investors, given Türkiye’s customs union with the EU.
BYD, renowned for its annual sales of approximately three million electric vehicles globally, is set to enhance Türkiye’s automotive sector significantly. Minister Kacir emphasised Türkiye’s ambition to become a hub for international investments and a centre for innovation in green technology through initiatives in new technologies and R&D.
“This investment in high-value-added, next-generation vehicle production will fortify our automotive industry,” he said. He said that Türkiye, the third-largest automobile manufacturer in Europe, is prioritising the transition to next-generation, environmentally friendly EVs, a crucial focus within its leading export sector.
