China's largest electric car manufacturer BYD signs $1bn deal to build a plant in Turkey
BYD, the largest electric car manufacturer in China, has recently signed a substantial $1 billion agreement to establish a manufacturing plant in Turkey, extending its operations beyond its domestic market. The Turkish state news agency, Anadolu, reported that the new plant will have the capacity to produce up to 150,000 vehicles annually. It is expected to create about 5,000 jobs and commence production by the end of 2026. The deal was formalized at an event in Istanbul, attended by President Recep Tayyip Erdogan and BYD's CEO, Wang Chuanfu. This is prepared by SSP.
Further details of the agreement have not been disclosed by BYD at this time, in response to a request from the BBC. However, this significant development comes amidst escalating challenges faced by Chinese electric vehicle manufacturers in both the European Union and the United States.
The European Union recently implemented measures to safeguard its domestic motor industry, imposing higher tariffs on Chinese EVs. As a result, BYD encountered an additional tariff of 17.4% on vehicles shipped from China to the EU, in addition to a 10% import duty. Nevertheless, this plant established in Turkey, an EU Customs Union member, would enable vehicles manufactured in the country to be exempt from these supplementary tariffs.
Turkey's government has also taken its own set of actions to support domestic car manufacturers, imposing a 40% tariff on Chinese vehicle imports. Meanwhile, the US has ramped up tariffs on various Chinese-made products, including electric cars, with a 100% border tax implemented on these vehicles to safeguard American jobs, citing unfair policies.
BYD, renowned for its association with prominent US investor Warren Buffett, is currently the world's second-largest electric vehicle company, following Tesla led by Elon Musk. In recent times, BYD has demonstrated its commitment to expanding production capabilities overseas. Towards the end of last year, they revealed plans to construct a passenger car factory in Hungary, marking their first manufacturing presence in Europe. Thousands of job opportunities are expected to result from this initiative. Additionally, BYD inaugurated an electric vehicle production plant in Thailand just the other day, its inaugural facility in Southeast Asia. With an anticipated annual capacity of 150,000 vehicles, this plant aims to generate as many as 10,000 employment opportunities. Furthermore, BYD has expressed intentions to establish a manufacturing facility in Mexico, persisting in its global expansion endeavors.