The Chinese electric car manufacturer BYD has announced plans to establish a new plant in Turkey. This was confirmed by the Turkish Ministry of Industry and Technology on the social media platform X. In a statement from BYD, the strategic geographical location of Turkey, which is close to both the Asian and European markets, is highlighted. The online news outlet Electrive reports that BYD hopes the new location will improve production capacities and optimize logistics.

Thanks to Turkey's unique advantages, such as the developing technological ecosystem, strong supplier base, exceptional location, and skilled workforce, BYD's investment in this new production facility will further enhance the brand's local production capabilities and increase logistical efficiency," according to the BYD statement.

The plans for the construction of the new plant come at a time when trade disputes between China and other major markets are making export conditions for BYD and other Chinese electric car manufacturers more difficult. The signing of the agreement to build the new plant by BYD CEO Wang Chuanfu and the Turkish Minister of Industry and Technology Mehmet Fatih Kacir on July 8, 2024, took place just three days after the enactment of new EU tariffs. By producing in Turkey, BYD could bypass potential trade barriers and benefit from the favorable production conditions in the region. This is particularly relevant as the demand for electric vehicles in Europe continues to grow.

According to reports from the Turkish news agency Anadolu, Turkey can score with a variety of compelling factors that make it a suitable location for BYD. However, BYD could also face challenges here: The political and economic situation in Turkey is volatile, and it remains to be seen how these factors will affect long-term investments. BYD has announced plans to invest around one billion US dollars in the construction of the new plant, which is expected to create up to 5,000 jobs, as reported by the Turkish Ministry of Industry and Technology. The exact location of the new plant is currently unknown. The pro-government Turkish newspaper Yeni Safak reports that BYD may be allocated an area in the province of Manisa, north of the port city of Izmir.

With this step, BYD aims to strengthen its presence in Europe while simultaneously safeguarding against potential trade barriers. Turkey, with its strategic location and economic conditions, offers an attractive site for the Chinese electric car giant.