By T. Jayani, JadeTimes News
China's leading electric vehicle manufacturer, BYD, has entered into a $1 billion (£780 million) agreement to establish a manufacturing plant in Turkey, furthering its international expansion. According to the Turkish state news agency Anadolu, the new facility will have the capacity to produce up to 150,000 vehicles annually. Production is expected to commence by the end of 2026, creating approximately 5,000 jobs.
The agreement was formalized at an event in Istanbul, attended by President Recep Tayyip Erdogan and BYD's chief executive, Wang Chuanfu. BYD has not yet provided additional details on the deal in response to us.
This announcement occurs as Chinese electric vehicle manufacturers face mounting challenges in the European Union and the United States. Recently, the EU imposed higher tariffs on Chinese electric vehicles to safeguard its automotive industry. This action has resulted in an additional 17.4% tariff on BYD vehicles imported from China to the EU, atop the existing 10% import duty.
Turkey's inclusion in the EU’s Customs Union allows vehicles manufactured in the country and exported to the bloc to bypass these additional tariffs. Furthermore, the Turkish government has implemented a 40% tariff on Chinese vehicle imports to bolster its domestic car manufacturers. In a similar vein, US President Joe Biden increased tariffs on Chinese made electric vehicles, solar panels, steel, and other goods in May, citing the need to counter unfair trade practices and protect American jobs. These measures include a 100% border tax on electric cars from China.
BYD, supported by renowned US investor Warren Buffett, ranks as the world’s second largest electric vehicle company after Tesla, led by Elon Musk. The company is swiftly expanding its manufacturing footprint outside China. At the end of last year, BYD announced plans to construct a manufacturing plant in Hungary, marking its first passenger car factory in Europe and expected to generate thousands of jobs.
Additionally, BYD recently inaugurated an electric vehicle plant in Thailand, its first factory in Southeast Asia, which is anticipated to have an annual capacity of 150,000 vehicles and create 10,000 jobs. The company also has plans to establish a manufacturing plant in Mexico.
