Türkiye becoming center of attraction for global investments
ISTANBUL
Türkiye is poised to become a major hub for global investments, particularly attracting international carmakers with various projects and production programs launched in recent years.
Türkiye aims to increase its share of global foreign direct investments (FDI) to 1.5 percent by 2028, Finance Minister Mehmet Şimşek has said.
Türkiye has attracted a total of $266.9 billion in FDIs between June 2003 and 2024, the minister noted.
“Our share of global direct investments, which was 0.2 percent before 2003, rose to 0.9 percent in the 2003-2023 period,” Şimşek said.
“With our [economic] program's twin policies of transformation and high value-added production, we will transform our country into a larger production base, increasing our growth potential,” the minister wrote on social media platform X.
Türkiye plays a pivotal role in global supply chains, owing to the establishment of numerous factories that leverage Türkiye’s strategic geographic location and its young, skilled workforce.
Notably, Chinese electric vehicle (EV) manufacturer BYD, the largest EV producer worldwide, has invested $1 billion in Türkiye. This significant investment is pioneering a “domino effect,” encouraging other companies, especially in the automotive sector, to follow suit and consider Türkiye for their investment plans.
BYD's investment aims to create 5,000 direct jobs and an additional 25,000 indirect jobs by producing and exporting EVs from Türkiye. This development opens up myriad opportunities for investments in other sectors linked to the automotive industry’s supply chain.
As global technology trends evolve, Türkiye is keeping pace with these rapid advancements. The nation has developed a robust research and development, as well as an innovation ecosystem, thereby solidifying its position on the international stage.
One notable example is the installation of fast charging stations, spearheaded by the Industry and Technology Ministry. This initiative supports the widespread use of EVs across the country, aiming to increase the number of EV chargers to 20,900, marking a fivefold boost in Türkiye’s EV charging infrastructure.
While BYD's investment process unfolds, other carmakers are coming into the spotlight. The Turkish government has implemented additional customs duties on Chinese combustion engine and hybrid passenger vehicles to protect and bolster the domestic market, a move that has proven effective as Chinese carmakers declare their investment intentions in Türkiye.
Following BYD, Chinese carmaker Chery has increased its investments in Türkiye, having already established a presence in the country. Additionally, EV manufacturers Skywell and MG continue their investment efforts in Türkiye. Meanwhile, the Turkish team of Chinese carmaker DFSK has started trainings for the company’s European operations.
In tandem, Chinese battery manufacturer Ganfeng Lithium has entered into an agreement with Turkish firm Yiğit Akü, planning a $500 million investment in Türkiye. The partnership aims to expand the market reach of both companies and jointly promote international trade in lithium-ion batteries and battery modules, establishing a joint venture in Türkiye, as per Yiğit Akü’s statement on the Public Disclosure Platform KAP.
