BYD to open RM4.7 billion plant in Turkiye to avoid tariffs

BYD has reportedly agreed to invest $1 billion in an assembly plant in Turkiye as part of its efforts to further expand its brand into the European region.

BYD’s Chairman Wang Chuanfu and Turkiye’s Minister of Industry and Technology Mehmet Fatih Kacir signed an investment deal in Istanbul, witnessed by President of Turkiye, Recep Tayyip Erdogan.

Local media reports claim the manufacturing plant will have an annual production capacity of up to 150,000 vehicles and is expected to create around 5,000 job opportunities.

The plant is expected to commence operations by the end of 2026. However, the specific models to be assembled at the upcoming facility are currently unknown.

The deal comes hot on the heels of the European Union (EU) slapping extra provisional tariffs of up to 38% on EVs imported from China.

To make matters worse for the Chinese manufacturers, Turkiye had previously announced a 40% import tariff on all vehicles from China to protect its automotive industry.

But by establishing an assembly plant in Turkiye, BYD can now bring its cars into Europe without having to deal with the import tariffs, as Turkiye is part of EU’s Customs Union.

China is the world’s largest EV producer, and with the fierce price war in the country, Chinese EV makers have been aggressively exporting their cars overseas.

The influx of Chinese EVs has led several countries to impose high tariffs not only on EVs but also various goods from China to protect their economies.

One way to avoid these tariffs is by starting local assembly operations. BYD has started making its move in the Old Continent with the announcement of assembly plants in Hungary and Turkiye.

On top of that, the brand has recently launched an assembly plant in Rayong, Thailand, cementing its presence in the Southeast Asian region.