“BYD will open a factory in Turkey,” the source said, adding that details would be announced by President Recep Tayyip Erdogan.
The news comes days after the EU imposed additional provisional tariffs of up to 38% on Chinese electric vehicles, following an investigation that found state subsidies were unfairly hurting European rivals.
Cars made in Turkey enjoy beneficial access to the EU through a customs union dating back to 1995, and the Marmara region around Istanbul has become one of the world’s leading auto manufacturing hubs.
Major carmakers including Fiat and Renault opened factories there in the early 1970s, followed by others such as Ford, Toyota and Hyundai, taking advantage of Turkey’s position at the crossroads of Europe, Asia and the Middle East.
Turkish media reported that the factory would be a billion-dollar investment by BYD.
Tariff free
Land that was previously allocated to Volkswagen in Manisa, north of the western port city of Izmir, would be donated to the Chinese company, the pro-government Yeni Safak daily reported.
“BYD is the world’s largest manufacturer of electric vehicles and one of the most advanced in terms of technology and manufacturing quality,” independent consultant Levent Taylan told AFP.
“Indeed, this will be an investment for the Turkish market, but especially for the European market, by circumventing the customs tariffs imposed on vehicles of Chinese origin,” he said.
He said BYD has the potential to sell around 20,000 to 25,000 vehicles per year in the Turkish market and export 75,000 to the EU.
“A factory (in Turkey) with an installed capacity of 100,000 to 125,000 vehicles per year would be a reasonable investment,” he added.
Under new Turkish regulations on investment incentives, BYD will be able to bypass a new 40% tariff imposed by Turkey on electric vehicle imports.
China has led the global shift to electric vehicles, with nearly one in three cars on its roads expected to be electric by 2030, according to the International Energy Agency’s annual Global EV Outlook.
Chinese electric vehicle makers have also increased exports, prompting many countries to take steps to protect their automakers.
They have also started to consider manufacturing overseas, with BYD having already announced plans to open its first European factory in Hungary.
In July, BYD opened a factory in Thailand.
The plant in Rayong, an industrial area southeast of Bangkok, will be able to produce up to 150,000 vehicles a year, according to the company, which dominates its home market.
Beijing has warned that the EU’s tariff move could trigger a trade war.
Via AFP
Source: https://www.ocafezinho.com/2024/07/11/byd-da-china-abrira-fabrica-de-carros-eletricos-na-turquia/
