BYD Signs $1 Billion Turkish Plant Deal

Turkey is set to announce a significant agreement with Chinese electric vehicle maker BYD Co. to build a $1 billion plant in Manisa province, enhancing BYD’s access to the European market through Turkey’s customs-union agreement with the EU. This move comes as the EU imposes provisional tariffs on Chinese EVs, adding 17.4% to the existing 10% rate. The new plant will also cater to Turkey’s domestic market, where EVs accounted for 7.5% of car sales last year. Recently, Turkey rescinded plans for an additional 40% tariff on all Chinese vehicles to encourage investment, following discussions between President Erdogan and China’s President Xi Jinping. BYD, already expanding globally with new plants in Thailand, Brazil, and Hungary, aims to mitigate tariff threats by staying close to major markets.