The new plant will facilitate BYD’s access to the European market thanks to Turkey’s customs agreement with the European Union.
Chinese automaker BYD is set to construct a manufacturing plant in Turkey. The investment is estimated at $1 billion (approximately €922.93 million), according to Turkish government sources. This information was reported by AFP, with further details provided by TASR.
President Recep Tayyip Erdogan is expected to unveil the specifics of the agreement during a ceremonial event in the province of Manisa, where the plant will be located.
This move aims to bolster BYD’s presence in Europe amidst escalating trade tensions between China and the European Union (EU). In addition to serving the European market, the new plant will also cater to the Turkish market, where electric vehicles (EVs) accounted for 7.5% of total car sales last year.
The new facility will ease BYD’s entry into the European market due to Turkey’s customs union with the EU. This development comes as the EU plans to introduce temporary tariffs on EVs imported from China. The additional tariffs on BYD vehicles, which will be on top of the existing 10% rate, are expected to be 17.4%.
