BYD, the world’s largest electric vehicle manufacturer, signed a deal with Turkish government to invest in Turkey. The facility, which will be established with an investment of approximately 1 billion dollars, will have an annual production capacity of 150 thousand. By the end of 2026, electric and hybrid vehicles will be produced.
The investment greement was signed between Chinese EV manufacturer BYD and the Ministry of Industry and Technology. The signatures with the Chinese automotive giant were signed at the Dolmabahçe Working Office under the auspices of President Recep Tayyip Erdoğan by Mehmet Fatih Kacır, Minister of Industry and Technology, and Wang Chuanfu, Chairman of the Board of Directors of BYD.
The government’s decision to impose an additional 40 percent customs duty on vehicles imported from China had mobilized Chinese automotive manufacturers to manufacture in Turkey. The negotiations with the relevant ministry had accelerated. Last week, BYD senior officials announced that they would establish a factory in Turkey with an investment of 1 billion dollars.
EKONOMİ newspaper had reported that Mehmet Fatih Kacır, Minister of Industry and Technology, would announce BYD’s investment decision at a ceremony in Istanbul to which representatives of the automotive sector were invited. According to another information obtained by EKONOMİ, Zorlu Group and Anadolu Group officials were also invited to yesterday’s meeting.
Will export to Europe
The Ministry of Industry and Technology announced the investment agreement in a written statement. Within the framework of the agreement, BYD is expected to establish an electric and rechargeable hybrid car production facility with an annual capacity of 150 thousand vehicles and an R&D center in Turkey with an investment of approximately 1 billion dollars.
Will create 5,000 direct employment
Up to 5 thousand people are planned to be directly employed at the facility, which is targeted to start production at the end of 2026. In the statement made by BYD, the following statements were made: “BYD’s investment in this new production facility will further enhance the brand’s local production capabilities and improve logistics efficiency. We aim to reach consumers in Europe by meeting the growing demand for new energy vehicles in the region.”
Minister Kacır emphasized their satisfaction with BYD’s investment in Turkey and said, “This investment decision is the product of ongoing discussions and consultations since our visit to China in December, where we witnessed BYD producing 32 patents a day with 110 thousand engineers.”
Kacır continued his statement as follows: “This investment for the production of new generation vehicles with high domestic added value will strengthen our automotive industry. In Turkey, Europe’s third largest automobile producer, we see the transformation towards new generation and environmentally friendly electric vehicles as a priority target in the automotive sector, which is the leading sector in exports with an annual value of over 35 billion dollars. Turkey will be the leading country of transformation in the automotive industry with new investments.”
“Historic day for Turkish automotive industry”
Stating that they are witnessing a historic day for the Turkish automotive industry, Kacır said, “Thirteen brands, eight of which are global, are producing in the automotive industry. Our production exceeded 1 million 400 thousand last year. Turkey is a gateway for investors to the European market through the Customs Union and to many export markets through free trade agreements signed with twenty-three countries.”
First foreign investment in automotive after 27 years
BYD’s signature marks the first direct foreign investment in the Turkish automotive sector in 27 years. BYD’s investment is expected to have a positive impact on other foreign investors. SWM Motor, which operates under Shineray Group, one of China’s leading automotive manufacturers and represented in Turkey by ATMO Group, had announced that it had applied for production in Turkey.
BYD top management in Manisa today
The Ministry of Industry and Technology did not share information about BYD’s production location. According to information obtained by EKONOMİ newspaper from Manisa industrial circles, BYD senior management will visit Manisa Organized Industrial Zone (MOBS) on Tuesday (today).
