BYD to reach deal with Turkey for USD1 billion EV plant, report says

The new plant could give BYD easier access to the European Union, with which Turkey has a customs union agreement, said a Bloomberg report.

BYD is reportedly nearing a deal with the Turkish government to build an electric vehicle (EV) plant there.

Turkey will soon unveil an agreement with BYD to build a USD1 billion plant in the west of the country, Turkish officials said, Bloomberg reported today.

Turkish President Recep Tayyip Erdogan is expected to announce the deal on Mon at a ceremony in Manisa province, where the plant will be located, according to the report.

There's also a domestic market to serve, with EVs accounting for 7.5% of Turkey's car sales last year and a population of nearly 90 million, the report said.

Turkey decided to impose an additional tariff of 40% on cars imported from China, with a minimum additional tariff of USD7,000 per vehicle, to be implemented on Jul 7, according to a presidential decision announced on Jun 8.

Turkey's Ministry of Commerce said at the time that the tariffs were aimed at increasing the market share of domestically produced vehicles and reducing the current account deficit.

In Mar 2023, Turkey imposed an additional 40% surcharge on tariffs on EVs imported from China, raising the tariffs to 50%.

Today, Turkey eased tariffs on Chinese car imports to encourage investment, according to the Bloomberg report today.

BYD opened its first EV factory in Thailand on Thu, and is also building a plant in Brazil and plans to build another in Mexico.

Aside from a plant in Hungary, BYD has little presence in Europe, Bloomberg's report said, adding that new factory openings underscores not only BYD's efforts, but also its determination to get closer to big markets and hedge against the threat of tariffs.