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China’s BYD inks deal for $1 billion Turkey plant, eyeing Europe

Firat Kozok and Tugce Ozsoy
Bloomberg

BYD Co., one of the world’s largest electric vehicle manufacturers, has signed a deal with Turkey to build a factory, a move that could bolster the Chinese automaker’s foothold in Europe.

The deal involves BYD investing about $1 billion in the plant, which will produce 150,000 electric and hybrid vehicles annually and include a research and development center.

The plant is expected to improve BYD’s “logistical efficiency” as it aims to reach European customers, according to a statement. Turkey is not a European Union member but has a customs deal with the bloc.

BYD Chairman Wang Chuanfu and Turkey’s Industry & Technology Minister Mehmet Fatih Kacir signed the agreement, according to an emailed statement from the Turkish ministry on Monday.

Last week, the EU moved forward with plans to impose temporary tariffs on electric vehicles imported from China, adding a 17.4% charge to the existing 10% rate for BYD.

The Turkish factory is expected to start production at the end of 2026 and will create up to 5,000 jobs.