- Aiming to bolster BYD’s presence outside its home market, BYD makes a $1 billion deal to build a manufacturing plant in Turkey, part of the EU’s Customs Union.
- The plant highlights BYD’s strategic move showing its competitiveness in the race with Tesla, the world’s largest EV manufacturer.
OUR TAKE
BYD’s expansion has not been influenced by the restrictions posed by the US and EU. On the contrary, its growing manufacturing plants prove the company’s promising future and help increase recruitment around the world, indicating its march toward the title of the world’s top maker of battery electric vehicles.
–Ashley Wang, BTW reporter
What happened
BYD, China’s leading electric vehicle manufacturer, will build a manufacturing plant in Turkey as a part of the company’s plan to expand outside its home country. According to the Turkish state news agency Anadolu, the plant will be built on a budget of $1 billion, which was formalised at an event in Istanbul. Once in use, the facility is expected to create around 5,000 jobs and start production by the end of 2026 with the aim of producing up to 150,000 vehicles annually.
The decision to invest in Turkey is particularly notable given the recent trade tensions and tariff increases imposed on Chinese EVs in both the European Union and the United States. Last week, the EU introduced additional tariffs on Chinese EVs to protect its motor industry, adding an extra 17.4% tariff on top of the existing 10% import duty. As Turkey belongs to the EU’s Customs Union, vehicles manufactured there will avoid the new tariffs, making it a strategically advantageous location for BYD.
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Why it’s important
BYD’s expansion is not limited to Turkey. The company recently opened an EV plant in Thailand and announced plans for another factory in Hungary, another EU member. These efforts are part of BYD’s broader strategy to meet the growing global demand for new energy vehicles and to establish a strong foothold in key markets.
This expansion is crucial as it allows BYD to circumvent increasing international trade barriers in China while boosting production capacity to compete with global EV leader Tesla. The Turkey plant represents a significant step in BYD’s ambition to become a dominant player in the global EV market.
