Chinese giant BYD prepares to open factory in Türkiye

It is a $1 billion (over 920 million euros) deal that the Chinese BYD has just concluded in Turkey. It involves building a factory in the country capable of producing some 150,000 electric cars per year. The new factory, which is expected to create 5,000 jobs, will be operational before the end of 2026.

“The announcement comes as Chinese manufacturers face increasing pressure in Europe and the United States,” underlines the BBC, which recalls the measures taken by the European Union to raise customs duties on electric vehicles imported from China.A decision that imposes on BYD an additional tax of 17.4% on vehicles shipped from China, which is added to import duties of 10%.”

Under the existing customs union between Turkey and the European Union, vehicles that will be manufactured in the country by BYD before being exported to European countries should be exempt from these additional customs duties. BYD had already announced the construction ofa first factory in Europe, in Szeged, Hungarywhere the Chinese giant even intends to set up a second one soon.

The agreement between BYD and Turkey was signed on Monday, July 8 in Istanbul in the presence of Turkish President Recep Tayyip Erdogan and BYD CEO Wang Chuanfu. The country, where many foreign manufacturers such as Hyundai, Toyota, Renault and Ford are established, already has a dynamic automobile industry. Last September, President Erdogan had asked Elon Musk to build a Tesla factory in Turkey.

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