Chinese automotive giant BYD will start manufacturing passenger cars in Turkey in 2026 to avoid additional import duties and to access Europe easily. The automaker agreed with the Turkish government to build a 1 billion USD plant with an annual capacity of 150,000 cars, Turkey’s industry and technology minister Mehmet Fatih Kacir shared.

BYD is the world’s largest new energy vehicle (EV+PHEV) manufacturer. It has already entered over 100 countries and regions, expanding its presence. European countries are key markets for BYD’s overseas expansion since the company’s profits are ten times higher here than in China. However, recently imposed additional EU import duties hampered the development of this brand. At the same time, Turkey also imposed an additional 40% tariff on cars imported from China.

BYD decided to kill two birds with one stone and decided to establish a manufacturing plant in Turkey. It will allow the Chinese automaker to avoid the local 40% tariff. Moreover, Turkey-made BYD cars will avoid additional EU tariffs because of the Free Trade Agreements.

BYD plant in Turkey

Turkey’s industry and technology minister Mehmet Fatih Kacir shared on social media that Turkish President Tayyip Erdogan signed a plant construction project with BYD Chairman and CEO Wang Chuanfu. Turkish minister highlighted that the facility will start production in 2026, employing up to 5,000 people.

The BYD Turkey plant will have an annual production capacity of 150,000 cars. The Chinese car maker will also launch an R&D center in the country. The total investment value of this project reaches 1 billion USD.  It seems the BYD’s facility in Turkey can not only satisfy the demand of local buyers but also send cars to European markets. It is worth noting that BYD announced the establishment of the passenger car factory in Szeged, Hungary. It will go into operation in late 2025 or early 2026 with an annual production volume of 100,000 units.

Editor’s comment

BYD is actively developing local assembly projects all around the world. It currently has two overseas passenger car manufacturing facilities in Uzbekistan and Thailand. BYD also has an SKD plant in India. Moreover, the Chinese automaker builds a plant in Brazil and plans to establish passenger car factories in Peru, Mexico, South Africa, and Indonesia. This strategy consumes an enormous amount of investment. However, it also helps BYD to leverage its sales volume and avoid import tariffs.