NAIROBI, Kenya- In a strategic move to extend its global footprint, China’s largest electric vehicle (EV) manufacturer, BYD, has inked a $1 billion deal to establish a manufacturing plant in Turkey.
This plant, slated to churn out up to 150,000 vehicles annually, is a significant step for BYD as it navigates the competitive waters outside its home turf.
The Turkish state news agency Anadolu reports that the facility will create around 5,000 jobs and is expected to commence production by the end of 2026.
The signing ceremony, held in Istanbul and graced by Turkish President Recep Tayyip Erdogan and BYD’s chief executive Wang Chuanfu, underscores the strategic importance of this venture.
With the European Union and the United States ramping up tariffs on Chinese-made EVs, BYD’s move to Turkey is both timely and tactical.
The EU recently slapped a hefty 17.4pc tariff on Chinese EV imports, on top of an existing 10pc duty.
However, because Turkey is part of the EU’s Customs Union, vehicles manufactured in Turkey can dodge this additional tariff, making it a sweet spot for BYD’s European ambitions.
In a related context, Turkey has also strengthened its domestic car industry by imposing a 40pc tariff on imported Chinese vehicles, further incentivizing local production.
This strategic positioning could offer BYD a competitive edge in the European market while circumventing punitive tariffs.
BYD’s expansion isn’t limited to Turkey. The company has been on an aggressive growth trajectory, with new manufacturing facilities cropping up across the globe.
Last year, BYD announced plans for its first European passenger car factory in Hungary, a move expected to generate thousands of jobs.
Just recently, BYD inaugurated an EV plant in Thailand, marking its first foray into Southeast Asia.
This plant, with a production capacity of 150,000 vehicles per year, is projected to create 10,000 jobs, showcasing BYD’s commitment to scaling its operations globally.
BYD’s substantial backing from veteran US investor Warren Buffett has boosted the global expansion, positioning it as a formidable contender in the international EV market.
