Türkiye eyes becoming R&D center for automakers

ISTANBUL

Türkiye that has a well-developed automotive industry aims to position itself as a center of R&D for automakers, especially for Chinese companies.

China’s BYD, the world's largest electric vehicle producer, earlier this month announced that it will build a factory with a capacity for manufacturing 150,000 vehicles, as well as a mobility and R&D center with a total investment of $1 billion.

Chery, another major Chinese automaker, is soon expected to unveil the details of the plans regarding the R&D center it plans to build in Türkiye.

The Chinese company already started recruiting people for the planned R&D center, Zhang Guibing, a senior executive at Chery International, told reporters last year, adding that they were looking for a location to build the facility.

Carmakers already have 15 R&D facilities in Türkiye, according to data from the Automotive Manufacturers' Association (OSD). When BYD and Chery materialize their investment, the number of automotive R&D centers will increase to 17.

The existing 15 R&D facilities employ around 6,000 people, while exports from those facilities amounted to $215 million in 2023.

In terms of output, Türkiye is one of the top five producer in the automotive industry in Europe.

BYD plans to make Türkiye a center of its future technologies and innovation, Stella Li, the executive vice president of BYD Ltd. and CEO of BYD Americas, told Anadolu Agency in a recent interview.

She boasts highly educated R&D staff in Türkiye.

BYD is not only an automotive firm but also an engineering company with around 110,000 R&D personnel around the world, she said, adding that it produces 32 patents each day.

The firm came to Türkiye not only to build another facility, but it has a passion to bring the most advanced plant for electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV), Li noted.

"So, we want to build a brand here, but the difference is BYD’s investment here is not [just] adding another 5,000 jobs, we want to bring innovation here, we want to boost the technology here," she said.

BYD aims to complete the plant, which will create 5,000 jobs, in the western province of Manisa in 2026.

In a recent interview with a private broadcaster Industry and Technology Minister Mehmet Fatih Kacır said that: “We want to transform Türkiye into a production center for the next generation of vehicles.”

The minister emphasized Türkiye’s selling points, including being part of the EU's customs union and having trade agreements with 28 countries.

"Chinese producers want rapid access to international markets," he said. "Investing in Türkiye offers them that."