BYD to build $1b EV plant in Turkey

BYD is set to announce the construction of a $US1 billion ($A1.48b) electric vehicle plant in western Turkey within weeks as an agreement between the Chinese manufacturer and the Turkish government is finalised.

Turkish president Recep Tayyip Erdogan is expected to announce the deal during an official ceremony in Turkey’s Manisa province, where the plant will be built. It aims to be open by 2026.

The new facility will expand the global presence of the brand which now has plants in China, Brazil (a former Ford facility), and Thailand. It is also in discussions with the Mexican government about establishing a base there.

It is expected the Turkish plant will give BYD easier access to the European Union, with which Turkey has a customs union agreement.

The EU has increased import tariffs on Chinese-made electric vehicles, slugging BYD with an additional 17.4 per cent charge on top the existing 10 per cent import rate.

There is also a domestic market to service, with EVs accounting for 7.5 per cent of all new car sales in Turkey – a country of almost 90 million people – over the past 12 months.

Turkey said it was stepping back from plans announced almost a month ago to impose an additional 40 per cent tariff on all vehicles from China, citing efforts to encourage investment. That decision followed talks between Mr Erdogan and Chinese president Xi Jinping this week.

BYD says it will bring more low-cost battery electric vehicles to Europe in the coming years, including the Seagull hatch which it aims to retail from less than €20,000 ($A32,070).

The Chinese marque sold some 12,944 new vehicles into EU, EFTA, and UK markets in the first five months of 2024, up from 2120 units at the same point last year.

with Automotive News Europe