BYD Signs $1 Billion Deal to Build 150,000-Unit EV Plant and R&D Center in Türkiye

July 8, 2024 — BYD, the world's largest electric vehicle producer, signed a $1 billion investment agreement with Türkiye's Industry and Technology Ministry to build a vehicle plant with an annual capacity of 150,000 units and a mobility and R&D center in Türkiye. Production is expected to begin at the end of 2026, and the project will create 5,000 jobs directly in the country, the ministry said.

Key terms of the investment

• Total investment: $1 billion.
• Production capacity: 150,000 vehicles a year at the new plant.
• A mobility and R&D center to be established alongside manufacturing.
• Production start: the end of 2026.
• Employment: 5,000 direct jobs in Türkiye.

Signing at the highest level

The deal was signed on Monday, July 8, 2024, at a ceremony attended by President Recep Tayyip Erdogan, Industry and Technology Minister Mehmet Fatih Kacir, and BYD Chairman and CEO Wang Chuanfu. According to the report, BYD is the world's leading electric vehicle producer, with around 3 million units in sales annually.

Government view: a hub for green technology

Minister Kacir said in a press release that Türkiye's efforts to attract new technologies and R&D highlight its potential to become not only a hub for international investment, but also a center of innovation and advanced green technology.

"This investment for the production of new generation vehicles with high domestic added value will strengthen our automotive industry," he said. Türkiye, the third-largest automobile manufacturer in Europe, sees the transformation toward next-generation, environmentally friendly electric vehicles as a priority target in the automotive sector — the country's leading export sector, Kacir underlined.

Vice President Cevdet Yilmaz said on X that the new investment marks Türkiye's improved investment climate. "We expect this investment to make a significant contribution to our exports in the medium term and further reduce our already shrinking current account deficit," he added.

Trade Minister Omer Bolat called BYD's investment a strong indicator of the opportunities Türkiye offers investors as one of Europe's key automobile production hubs, citing its attractive investment climate, strong production base, qualified workforce, effectively implemented Customs Union and wide network of free trade agreements. "In coordination with all relevant institutions, the Trade Ministry will continue to contribute to our country's policies on the basis of projections for direct investments in line with our domestic production, employment, and export targets," he added.

Trade-policy context of the deal

• On the same Monday, Türkiye announced an additional 40% tax on vehicles imported from China, aiming to boost domestic production's share of the Turkish market and encourage investment.
• The EU Commission also announced additional tariffs on electric vehicles from China.
• Another Chinese automaker, SWM, said it was applying to build a factory in Türkiye.

Company and contacts

BYD — the world's largest electric vehicle producer, with annual sales of around 3 million units. The $1 billion investment agreement with Türkiye's Industry and Technology Ministry was signed on July 8, 2024.

Contacts: the source report (Anadolu Agency, July 8, 2024) provides no direct contact details; no contact information is invented for this release.

Website: https://www.byd.com/