BYD is set to announce the construction of a US$1 billion ($1.48b) electric vehicle plant in western Turkey within a few weeks, as a deal between the Chinese manufacturer and the Turkish government is finalised.
Turkish President Recep Tayyip Erdoğan will announce the deal during an official ceremony in Turkey's Manisa province, where the plant will be built. It aims to open by 2026.
The new facility will expand the brand's global presence, which has current plants in China, Brazil (formerly a Ford facility) and Thailand. It is also in discussions with the Mexican government about setting up a base there.
It is expected that the Turkish plant will give BYD easier access to the European Union, with which Turkey has a customs union agreement.
EU hikes import duties on Chinese-made electric vehiclesThis imposes an additional duty of 17.4 percent on BYD on top of the existing 10 percent import rate.
In addition, there is also a domestic market to serve, where electric vehicles accounted for 7.5 percent of all new car sales in Turkey, a country of about 90 million, over the past 12 months.
Turkey said it was backing down from a plan announced about a month ago to impose an additional 40 percent tariff on all vehicles coming from China, citing efforts to encourage investment. The decision was taken after talks between Mr. Erdogan and Chinese President Xi Jinping this week.
BYD says it will bring more low-cost battery electric vehicles to Europe in the coming years, including the Seagull hatch, which it aims to retail for under 20,000 euros ($32,070).
The Chinese brand sold around 12,944 new vehicles in the EU, EFTA and UK markets in the first five months of 2024, up from 2120 units by the same time last year.
with Automotive News Europe
