The $1 billion deal was signed at the Presidential Dolmabahçe Working Office in Istanbul, under the auspices of President Recep Tayyip Erdoğan. Industry and Technology Minister Mehmet Fatih Kacır and BYD Chairperson and CEO Wang Chuanfu represented their respective parties at the signing.

The new facility will produce electric and rechargeable hybrid cars with an annual capacity of 150,000 vehicles. It will also house a research and development center focused on sustainable mobility technologies. Production is slated to begin by the end of 2026, with the plant expected to create up to 5,000 direct jobs.

"Thanks to Türkiye's unique advantages such as its developing technology ecosystem, strong supplier base, extraordinary location, and qualified workforce, BYD's investment in this new production facility will further improve the brand's local production capabilities and improve logistics efficiency," BYD stated. The company aims to meet the increasing demand for new energy vehicles in Europe through this investment.

Minister Kacır, in a post on X (formerly Twitter), celebrated the agreement as a significant step for Türkiye's automotive industry. He highlighted the country's role as a center of attraction for global investments and emphasized the government's commitment to fostering investor-friendly policies.

"Türkiye is a gateway for investors to access the European market through the Customs Union and many export markets thanks to free trade agreements. Those who trust and invest in Türkiye will continue to win," Kacır noted.

The location of the new facility has not been officially disclosed, though previous media reports suggested it might be in the western Manisa province.

This substantial investment follows the European Union's recent decision to impose additional provisional tariffs of up to 38% on Chinese EVs, citing state subsidies that were deemed to unfairly undermine European competitors. Turkish-made cars benefit from favorable access to the EU under a customs union agreement dating back to 1995.

The Marmara region, around Istanbul, has become a global automotive hub, with major carmakers such as Fiat, Renault, Ford, Toyota, and Hyundai operating plants there since the 1970s. Türkiye is the third-largest automobile manufacturer in Europe and a leader in exports, with an annual export value exceeding $35 billion.

Minister Kacır underscored the country's goal of transitioning towards new generation, environmentally friendly electric vehicles in the automotive sector, viewing BYD's investment as a crucial step in this direction. (ILKHA)