China's Electric Vehicle Giant BYD Signs $1 Billion Deal for Turkey Plant
BYD, China's biggest electric vehicle maker, has struck a $1 billion agreement to build a plant in Turkey. The plant will have the potential to build up to 150,000 automobiles per year and is estimated to generate 5,000 employment. The agreement was inked at a ceremony attended by President Recep Tayyip Erdogan and BYD CEO Wang Chuanfu.
This move is part of BYD's ongoing expansion strategy outside of its home nation.
According to the Turkish national news agency Anadolu, the new factory would have the capacity to build up to 150,000 vehicles each year. It is planned to produce approximately 5,000 employment and start production by the end of 2026.
The agreement was officially inked during a ceremony in Istanbul attended by President Recep Tayyip Erdogan and BYD CEO Wang Chuanfu. BYD, however, has yet to give any information regarding the deal in response to a BBC request.
This development comes as Chinese electric vehicle producers face increasing obstacles in the European Union (EU) and the United States. Last week, the EU raised duties on Chinese electric vehicles in an effort to protect its domestic automotive industry. As a result, BYD now faces a 17.4% charge on vehicles imported from China to the EU, in addition to the existing 10% import fee.
Turkey, as a member of the EU's Customs Union, has the advantage of exporting autos to the bloc without incurring additional tariffs. In an effort to help its own automakers, the Turkish government has put a 40% duty on Chinese vehicle imports.
In response to unfair policies and to protect domestic jobs, US President Joe Biden increased tariffs on Chinese-made electric cars, solar panels, steel, and other goods. This includes a 100% border tax on electric cars imported from China.
BYD, backed by renowned US investor Warren Buffett, currently holds the position of the world's second-largest electric vehicle company, trailing behind Elon Musk's Tesla. The corporation has actively expanded its production facilities outside of China. BYD said last year that it would build its first passenger car production in Hungary, an EU member state. This venture is projected to generate countless work possibilities.
Furthermore, BYD just opened its first manufacturing in Southeast Asia, which is in Thailand. The electric car plant has an annual production capacity of 150,000 vehicles and is expected to create 10,000 jobs. In addition, BYD has stated that it plans to create a manufacturing plant in Mexico.
BYD, China's leading electric car manufacturer, has signed a US$1 billion deal to establish a manufacturing plant in Turkey.
The plant will have the capacity to produce up to 150,000 vehicles annually and is expected to create 5,000 jobs.
The agreement was signed during a ceremony attended by President Recep Tayyip Erdogan and BYD's CEO, Wang Chuanfu.
Source: BBC