Chinese electric vehicle manufacturer BYD announced its plans to enter Turkish market with an investment of USD 1 billion. The decision comes after Turkish government announcing an additional import tax on Chinese-origin automobiles. With the new investment Chinese BYD will be exempt from that additional import tax.
Senior BYD officials told Bloomberg that Chinese electric carmaker BYD’s $1 billion investment in Turkey will be announced at a ceremony on Monday.
Industry and Technology Minister Mehmet Fatih Kacır said in May that BYD and Chery were in advanced talks to invest in Turkey.
Factory to be built in Manisa
Officials stated that the negotiations with BYD have been finalized and that the company will build its second factory in Turkey, following its first factory, which was announced to be built in Hungary.
According to officials, the factory will be built in Manisa, one of the most important cities for the Turkish automotive sector. President Recep Tayyip Erdogan is scheduled to attend the contract ceremony.
The tax exemption decision for the investment was published in the Official Gazette today. Pursuant to the Presidential decision amending the decision on the application of additional customs duty on imports published in today’s issue of the Official Gazette, imports of Chinese-origin automobiles realized by benefiting from customs exemption within the scope of the investment incentive certificate will be exempt from the additional financial obligation. Accordingly, those who invest in Turkey will be exempted from this tax.
Decision comes after 40% additional tax
Turkish government announced last week an additional import tax of 40% on automotive imports made in China. Within the scope of the Presidential Decree Amending the Decree on the Implementation of Additional Customs Duty on Imports published in the Official Gazette last month, it was decided to impose an additional 40 percent tax on Chinese cars.
