Chinese electric vehicle manufacturer BYD Co Ltd (002594.SZ) agreed with the Turkish government to build a $1 billion production plant in Turkey with an annual capacity of 150,000 vehicles, Turkey's industry and technology minister said on Monday.
Minister Mehmet Fatih Kacir posted pictures on social media platform X of Turkish President Tayyip Erdogan meeting BYD Chief Executive Wang Chuanfu at a deal-signing ceremony for the plant.
"We envisage that BYD will establish an electric and rechargeable hybrid car production facility with an annual capacity of 150,000 vehicles and an R&D center for mobility technologies in our country, with an investment of approximately 1 billion dollars," Kacir said.
"The facility, which is planned to start production at the end of 2026, will directly employ up to 5,000 people."
Last week, the European Union raised tariffs on Chinese EVs to help protect its industry. The deal could ease the access of investors, including BYD, which is the largest EV producer in the world, to European markets given Turkey's customs union with the EU, Kacir said.
He said the deal was the outcome of talks held with Chinese officials since a visit to China in December 2023.
China's state-backed Securities Times earlier reported - without mentioning Turkey - that BYD agreed to build a factory for core parts of new energy vehicles that would backstop capacity of its factory in the southern city of Shenzhen.
Last week, a deputy chairman of Turkey's ruling AK Party told Reuters that Chinese carmaker Guangzhou Automobile Group (601238.SS) was in talks with Turkish EV manufacturer TOGG over a possible joint production venture.
GAC's top management plans to visit TOGG in Turkey this month, the AK Party's Zafer Sirakaya said.
