Chinese BYD to build $1 bln factory in Türkiye, SWM could be next

ANKARA

China’s BYD, the world's largest electric vehicle producer, has signed a deal with the Turkish Industry and Technology Ministry to build a $1 billion factory, while another Chinese carmaker SWM also has investment plans.

BYD is expected to 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, the ministry said on July 8.

The firm is expected to begin production at the end of 2026 and create 5,000 jobs directly.

The parties signed the deal in a ceremony attended by President Recep Tayyip Erdoğan, Industry and Technology Minister Mehmet Fatih Kacır, and BYD Chairman and CEO Wang Chuanfu.

Erdogan also met with a BYD delegation in Istanbul.

Kacır said in a press release that Türkiye's efforts to bring new technologies and R&D highlight its potential to become not only a hub for international investments, but also a center of innovation and advanced green technology.

"This investment for the production of new generation vehicles with high domestic added value will strengthen our automotive industry," he said.

Türkiye, the third-largest automobile manufacturer in Europe, sees the transformation toward next-generation, environmentally friendly electric vehicles as a priority target in the automotive sector, which is the leading Turkish export sector, he underlined.

Vice President Cevdet Yılmaz said on X this new investment marks Türkiye’s improved investment climate.

"We expect this investment to make a significant contribution to our exports in the medium term and further reduce our already shrinking current account deficit," he added.

The news comes days after the EU slapped additional provisional tariffs of up to 38 percent on Chinese EVs following an investigation that concluded state subsidies meant they were unfairly undermining European rivals.

On July 8, SWM, another Chinese automaker, announced it was applying to build a factory in Türkiye.

"We are currently working on a production facility with an annual production capacity of more than 50,000 vehicles,” said Anto Chernov, CEO of Atmo Group, SWM’s representative.

The production facility should meet the needs of the Turkish market and will also focus on exports to the Balkan countries and other markets in the EU region, he stressed.

"We started negotiations with the Turkish Industry Ministry months ago for production in Türkiye, and we are in talks with the Turkish Trade Ministry and the Turkish Investment Office," Chernow noted.

SWM, an Italian brand, was purchased by Chinese leading automobile producer Shineray Group in 2014.

The brand entered the Turkish market at the end of 2023 and determined the country as the center of its global growth strategy, Atmo said.