Tesla rival, BYD signs $1bn plan to build EV plant in Turkey amid fight for global dominance
This expansion isn't just about growth, it's also a strategic play for BYD to go global
Following a trend we previously reported on at Techloy, noting the recent uptick of Chinese EV Manufacturers setting up shop in the unlikeliest of places amid increasing pressure from the US and the European Union. Well, Chinese auto EV manufacturer BYD, just announced a massive $1 billion investment in a brand new factory in a European country. This time, in Turkey!
Emmanuel Oyedeji
The factory will crank out a whopping 150,000 electric vehicles every year, creating around 5,000 new jobs in the process. Production is set to kick off by the end of 2026, according to Turkey's Anadolu Agency.
The deal was signed by BYD's CEO, Wang Chuanfu, alongside Turkish President Recep Tayyip Erdogan, in a high-profile ceremony held in Istanbul.
This expansion isn't just about growth, it's also a strategic play for BYD to go global. It is however notable to mention that lately, things have gotten a bit bumpy for Chinese electric vehicle makers in places like Europe and the US.
In the US, EV automakers are banned from acquiring tech from Chinese OEMs. On the other hand, the European Union just put a tariff on Chinese EVs, making them more expensive to sell there. BYD will face an extra 17.4% levy on top of the existing 10% import duty.
But, here's the clever part, Turkey is in the EU's Customs Union. This means BYD vehicles built in Turkey can avoid those extra tariffs and zip right into the European market. Turkey itself even puts a hefty 40% tax on Chinese-made car imports, so this new factory positions BYD nicely within the Turkish market too.
This Turkey deal is just the latest chapter in BYD's global domination quest. Last year BYD announced a factory in Hungary, its first passenger car plant in Europe. Just this week, it opened its first factory in Southeast Asia, located in Thailand. This one's also a 150,000-vehicle-a-year powerhouse, expected to generate 10,000 jobs. Meanwhile, rumour also has it that BYD is eyeing a factory in Mexico.
David Adubiina
Backed by billionaire investor Warren Buffett, BYD is already a force to be reckoned with. With a 15% market share in Q1 2024, it is hot on the heels of Tesla, which currently holds the top spot with a 19% market share, and with all this global expansion, it is definitely looking to take that spot.
Emmanuel Oyedeji
