BYD Auto is set to announce plans this week to build a $1 billion electric vehicle (EV) assembly plant in Turkey, targeting the domestic and European markets, according to local sources citing Turkish government officials.
The announcement would come just days after the European Union imposed additional import duties of up to 38% on battery electric vehicles (BEVs) imported from China, on top of the existing 10% rate, after an investigation by the European Commission found that Chinese manufacturers had unfairly benefited from significant government incentives for more than a decade. BEVs imported from China by BYD would attract additional EU tariffs of just over 17%.
Turkish President Recep Tayyip Erdogan was expected to announce a deal with BYD at a press conference in Manisa province, where the plant was planned, on Monday. The plant would produce electric and hybrid vehicles for Turkey and export them to Europe.
Last year, more than 72,000 BEVs and nearly 105,000 hybrids were sold in Turkey. Total car sales in the country amounted to 1.28 million units.
The Turkish government indicated last week that it is reconsidering plans announced last month to impose an additional 40% import tariff on all vehicles imported from China, as the country seeks to prioritize foreign investment. President Erdogan met Chinese President Xi Jinping last week at the Shanghai Cooperation Organization conference in Astana, Kazakhstan.
Shenzhen-based BYD, China’s largest EV maker, previously revealed plans to bring low-cost BEVs to Europe, including the Seagull passenger car priced at around €20,000. The company hopes to avoid EU tariffs by producing the vehicles in Turkey, which has a customs union with the EU.
Last week, BYD opened a new assembly plant with 150,000 ERVs in Thailand, as the company focuses primarily on markets in Southeast Asia.
A factory is also being built in Hungary.
“BYD Announces EV Factory in Turkey” was originally created and published by Just Cara brand of GlobalData.
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