Chinese electric vehicle (EV) manufacturers are accelerating their entry into emerging developing countries such as Southeast Asia.
Amid increasing restrictions such as the United States and the European Union (EU)’s consecutive decisions to impose high tariffs, leading Chinese EV company BYD decided to build a new production plant in Turkiye.
According to Xinhua News Agency and AFP on the 8th, BYD Chairman Wang Chuanfu signed an agreement in Istanbul for the construction of a new factory worth $1 billion with Mehmet Fatih Kacır, Minister of Industry and Technology of Turkiye. Turkish President Recep Tayyip Erdogan also attended the signing ceremony.
BYD plans to equip the new Turkish factory with facilities capable of producing 150,000 electric and hybrid vehicles annually and will also open a research and development (R&D) center. They decided to directly employ 5,000 people in Turkiye.
The new BYD factory will start operations around the end of 2026.
This agreement was reached just three days after the EU applied a maximum tariff rate of 47.6% on Chinese EVs on the 5th.
According to the Customs Union between Turkiye and the EU, which came into effect in 1996, cars manufactured in Turkiye can be exported to the EU under more favorable conditions. Therefore, major automakers such as Fiat, Renault, Ford, Toyota, and Hyundai have their factories in Turkiye.
In a statement, BYD clearly expressed its intention to enter the European market, saying, “Our goal is to reach European consumers with increasing demand for alternative energy vehicles. By investing in Turkiye, which has various advantages, we expect to improve BYD’s productivity and logistics efficiency.”
Kacır praised in a statement, “This is a historic day for our automotive industry. BYD’s decision proves that Turkiye is at the center of global investment.”
On the same day, SWM, another Chinese automaker, also announced that it had applied to the authorities to build a production plant in Turkiye.
Wuling Motors, a well-known Chinese automaker under SAIC Motor, announced on the 8th that it will operate an EV production base in Thailand. They plan to produce 10,000 small EVs annually with an investment of 200 million baht (approximately $5.49 million).
They mainly produce low-cost small hatchbacks like the Bingo EV for the Thai market at the Eastern Assembly Plant in Laem Chabang. By procuring parts from Indonesia and other places, the local procurement rate is expected to be about 50%. SAIC Motor has thus secured its second production base following Indonesia.
SAIC Motor already launched Air EV in Thailand in July last year and sold 1,400 units.
Previously, BYD held a completion ceremony for a passenger car factory in Thailand on the 4th, and large Chinese enterprises such as Changan Automobile and SAIC Motor Group have also completed their factories.
