Tesla’s rival BYD has signed an agreement with the Turkish Government to build a major EV production plant in the country.
China’s largest EV manufacturer outlined plans to develop the $1bn EV production facility that will expand the company’s manufacturing capabilities in Europe.
The agreement was signed at an event held in Istanbul, which was attended by Turkey’s President Recep Tayyip Erdogan and BYD’s chief executive Wang Chuanfu.
BYD’s latest European endeavour follows the company’s plans to develop an EV production plant in Hungary, with plans for an additional plant in the country in the works.
The Chinese automaker’s expansion plans come at a pivotal time for the industry, with the EU recently announcing countervailing duties on importing Chinese electric vehicles.
Overview of BYD’s Turkish EV plant
The company’s new EV production plant is expected to start production at the end of 2026.
BYD says the facility will produce up to 150,000 electric vehicles annually and will create around 5,000 jobs.
Turkey’s strategic location
Turkey could prove pivotal for BYD’s ambition of becoming the world’s EV superpower.
This is because Turkey is a member of the EU Customs Union, meaning EVs made in Turkey and exported to the EU can avoid additional tariffs.
Turkey also has a rich history of auto manufacturing, ranking 13th globally with over 1.3 million vehicles made in 2022 alone.
Moreover, around 70% of Turkish-made vehicles are exported, making it a critical part of the country’s economy, with Germany being a top buyer.
Industry giants such as Ford, Fiat, Renault, Hyundai, and Toyota all have production plants in Turkey, making the nation a hub of technological expertise with established supply chains.
Turkey’s automotive sector is on the rise, with a focus on research and development alongside established manufacturing strengths.
BYD’s investment into an EV production plant in the country signifies not only their ambitions to become the planet’s premier EV manufacturer but also Turkey’s potential as a hub for innovation.
