By Anadolu Agency
July 9, 2024 8:54 amChina’s BYD, the world’s largest electric vehicle producer, has signed a deal with the Turkish Industry and Technology Ministry to make investments in Türkiye.
The firm is expected to build a factory in Türkiye with a capacity for manufacturing 150,000 vehicles, as well as a mobility and R&D center with a total investment of $1 billion, the ministry said Monday.
The firm is expected to begin production at the end of 2026 and create 5,000 jobs directly in the country.
On Monday, the parties signed the deal in a ceremony attended by President Recep Tayyip Erdogan, Industry and Technology Minister Mehmet Fatih Kacir, and BYD Chairman and CEO Wang Chuanfu.
Erdogan also met with a BYD delegation in Istanbul.
On Monday, Türkiye also announced the imposition of an additional 40% tax for imported vehicles from China to boost domestic production’s share of the Turkish market and encourage investments.
The EU Commission also announced additional tariffs for electric vehicles from China.
– Türkiye to become hub
BYD is the world’s leading electric vehicle producer, with around 3 million units in sales annually.
Kacir said in a press release that Türkiye’s efforts to bring new technologies and R&D highlight its potential to become not only a hub for international investments, but also a center of innovation and advanced green technology.
‘This investment for the production of new generation vehicles with high domestic added value will strengthen our automotive industry,’ he said.
Türkiye, the third-largest automobile manufacturer in Europe, sees the transformation towards next generation, environmentally friendly electric vehicles as a priority target in the automotive sector, which is the leading Turkish export sector, he underlined.
– Attractive investment climate
Vice President Cevdet Yilmaz said on X this new investment marks Türkiye’s improved investment climate.
‘We expect this investment to make a significant contribution to our exports in the medium term and further reduce our already shrinking current account deficit,’ he added.
Omer Bolat, the Turkish trade minister, also said BYD’s investment is a strong indicator of the opportunities offered to investors by Türkiye, which is one of Europe’s key automobile production hubs, with its attractive investment climate, strong production, qualified workforce, effectively implemented Customs Union, and wide network of free trade agreements.
‘In coordination with all relevant institutions, the Trade Ministry will continue to contribute to our country’s policies on the basis of projections for direct investments in line with our domestic production, employment, and export targets,’ he added.
On Monday, SWM, another Chinese automaker, announced it was applying to build a factory in Türkiye.
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