China’s BYD signs deal to open electric car plant in Turkey

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

China’s electric vehicle giant BYD yesterday signed a one-billion- dollar agreement with Turkey to open a plant in the country in a move that would help it dodge new EU tariffs.

The signing ceremony in Istanbul between BYD’s CEO Wang Chuanfu and Turkey’s industry and technology minister Fatih Kacir was overseen by President Recep Tayyip Erdogan.

According to the Turkish industry and technology ministry, BYD will open a production facility with an annual capacity of 150,000 vehicles as well as a research and development centre. The plant will provide direct employment for 5,000 people.

The news comes days after the European Union 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.

Turkish-made cars enjoy beneficial access to the EU under a customs union that dates to 1995 and the Marmara region around Istanbul has become one of the leading centres of the world’s automobile industry.

Major carmakers including Fiat and Renault opened plants there at the beginning of the 1970s, with others like Ford, Toyota and Hyundai following, taking advantage of Turkey ’s position at the crossroads between Europe, Asia and the Middle East.

The land that was previously allocated for Volkswagen in Manisa in the north of the Western porty city of Izmir would be given to the Chinese company, the pro-government daily Yeni Safak reported. Under new Turkish regulations on investment incentives BYD will be able to circumvent a new 40 percent tariff that Turkey imposed on electric vehicle imports.