According to reports, on July 8, local time, BYD signed an agreement with the Turkish government to invest and build a factory in Turkey. According to the agreement,BYD will invest approximately US$1 billion (approximately 7.294 billion yuan) to establish a factory and R&D center with an annual output of 150,000 vehicles.The factory is scheduled to be put into operation at the end of 2026 and will provide jobs for up to 5,000 workers.
BYD Chairman Wang Chuanfu and Turkish Industry and Technology Minister Mehmet Fatih Kacir signed the agreement, according to an emailed statement from the Turkish Ministry of Industry and Technology on Monday.
BYD's establishment of a local factory in Türkiye can be regarded as a win-win situation for both parties.
According to reports, although Türkiye is not a member of the European Union,However, according to the "Customs Union" established in 1995, Turkish-made cars enjoy preferential treatment into the EU.
BYD is currently subject to an additional 17.4% tariff by the EU. Adding the previous 10% basic import tariff, BYD's export tariff to the EU is as high as 27.4%. If BYD chooses to export to the EU from Turkey, the tariff rate will be significantly reduced.
In addition, perhaps to attract more Chinese car companies to build factories in Türkiye, Türkiye announced on July 5 thatIt will scrap plans announced a month ago to impose a 40% tariff on all vehicles from China, citing its efforts to encourage investment.
At present, Chinese brands are becoming more and more popular among Turkish people, and ten Chinese car brands are entering the Turkish market. It can be expected that after BYD, more domestic car companies will choose to build factories in Turkey.