BYD’s $1 Billion Turkey Factory to Start Production by End of 2026, Government Says

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Turkish President Recep Tayyip Erdogan (center) poses for a photo with BYD CEO Wang Chuanfu (third from the right) and Turkish Minister of Industry and Technology Mehmet Fatih Kacir (third from the left) during a signing ceremony in Istanbul on July 8. Photo: Embassy of the Republic of Turkey in Beijing

Chinese electric-vehicle (EV) giant BYD Co. Ltd. (002594.SH) is forging ahead with its $1 billion factory and research and development (R&D) center in Turkey, with production expected to start by late 2026, a Turkish official said.

The project has received all the necessary permits, and is expected to begin construction early next year at a site in western Turkey’s Manisa province, said Kaan Masatci, a project manager at Turkey’s presidential investment office, in an interview with Caixin last week.

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BYD Co. Ltd. is progressing with a $1 billion factory and R&D center in Turkey, set to start production by late 2026 with an annual capacity of 150,000 vehicles.
Turkey offers tax exemptions and incentives to attract Chinese investment, including a reduced import duty for companies with local production facilities.
Additional Chinese automakers and battery manufacturers are investing in Turkey, aligning with Turkey's strategy to become an EV production hub linked to Europe.

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Who’s Who

BYD Co. Ltd.: BYD Co. Ltd. is a Chinese electric-vehicle giant progressing with a $1 billion factory and R&D center in Turkey. Production is set to start in late 2026, with an annual capacity of 150,000 vehicles. Despite tariffs on Chinese imports, BYD benefits from exemptions due to local investments. The Turkish government supports BYD with tax and import duty waivers and offers a strategic bridge to Europe, amidst rising EU tariffs on Chinese vehicles.

Nio Inc.: Nio Inc. is part of a wave of Chinese companies expanding in Europe, including plans for manufacturing operations in Turkey and neighboring countries like Hungary and Poland.

Great Wall Motor Co. Ltd.: Great Wall Motor Co. Ltd. is one of several Chinese automakers, along with companies like BYD and Nio, that are expanding their manufacturing operations in Turkey and other European countries such as Hungary and Poland. This expansion is part of a broader trend where Chinese automakers are increasing their presence in Europe, motivated by local production incentives and rising EU tariffs on Chinese vehicles.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is one of the Chinese automakers expanding in Europe, with announced or planned manufacturing operations in Turkey and neighboring European countries, such as Hungary and Poland. They are part of the influx of Chinese companies, including BYD, Nio Inc., and Great Wall Motor Co. Ltd., aiming to establish a presence in the European market amid rising EU tariffs on Chinese vehicles.

Farasis Energy Gan Zhou Co. Ltd.: Farasis Energy Gan Zhou Co. Ltd. is collaborating with a Turkish EV firm to construct a significant battery factory as part of a $2 billion project in Turkey. Half of the investment for this large-scale venture comes from Farasis. The factory is scheduled to begin production in 2026, complementing the influx of Chinese automakers in Turkey and aligning with broader Chinese expansion in the European EV sector.

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What Happened When

June 8, 2024：: Announcement was made that Ankara would impose a 40% additional tariff on fuel and hybrid vehicles originating from China.

July 5, 2024：: An exemption was granted for automakers investing in local production facilities in Turkey, reducing their import duty to the standard 10%.