Turkey is in the final stages of talks on a possible investment by Chinese car maker Chery, an official said, as Ankara seeks to deepen its ties with Chinese car makers after reaching an investment deal with China's BYD earlier this year.
The Turkish official, who spoke on condition of anonymity late on Monday, did not specify the investment Chery and Ankara were discussing or whether there was a timeline for reaching a final agreement.
In July, Ankara said Chinese electric vehicle manufacturer BYD (002594.SZ) agreed to build a $1 billion production plant in Turkey with an annual capacity of 150,000 vehicles.
Turkey's presidency said on Saturday that President Tayyip Erdogan had met Chery International President Guibing Zhang on the sidelines of an investment event in Istanbul. Industry and Technology Minister Mehmet Fatih Kacir also attended the talks.
Chery was not immediately available for comment.
Turkey provides land allocation, extensive tax breaks and various supports for new plug-in hybrid and electric vehicle plant investments. The investment support program requires minimum 150,000 unit per year production and also allows the investor to sell a set number of cars in local market tariff free.
Turkey, home to manufacturing facilities of Ford (F.N) , Stellantis (STLAM.MI) , Renault (RENA.PA) , Toyota <7203.T> and Hyundai (005380.KS) could produce up to 2 million vehicles annually, with a third of the capacity allocated to commercial vehicles, according to data from automotive manufacturers associations.
Turkey's government has been courting Chinese manufacturers to broaden its manufacturing base and accelerate the transition of its automotive industry into electric cars.
