BYD’s Chinese Factory in Turkey: A New Step Towards European Markets: Chinese company BYD plans to build a billion-dollar factory in Turkey,
bringing it closer to European markets thanks to the customs union agreement between Turkey and the European bloc.

Contents

The Upcoming Agreement

Benefits of the New Factory

The Local Market

Reversal of Additional Tariffs

Chinese Success in the Local Market

The Upcoming Agreement

Turkish officials have stated that Turkey will soon announce an agreement with Chinese company BYD to build a billion-dollar factory in the western part of the country,
strengthening the presence of the electric vehicle manufacturer in Europe amid escalating trade tensions.
The officials, who requested anonymity because they are not authorized to speak publicly,
indicated that Turkish President Recep Tayyip Erdoğan might announce the agreement
on Monday during a ceremony in Manisa Province, where the factory will be built.
Representatives from the Chinese company and the Turkish president’s office declined to comment.

Benefits of the New Factory

The new factory will improve BYD’s access to the European Union, as Turkey has a customs union agreement with the bloc.
This week, the EU proposed plans to impose temporary tariffs on electric cars imported from China,
which would result in an additional 17.4% tariff on BYD on top of the current rate of 10%.

The Local Market

There is also a significant local market to serve, as electric vehicles accounted for 7.5% of car sales in Turkey last year,
a country with a population of about 90 million.

Reversal of Additional Tariffs

Turkey announced on Friday that it would reverse plans nearly a month ago to impose an additional 40% tariff on all vehicles from China,
citing efforts to encourage investment.
This decision came after Thursday’s talks between Erdoğan and Chinese President Xi Jinping during the Shanghai Cooperation Organization meeting in Astana, Kazakhstan.

Chinese Success in the Local Market

BYD has seen significant growth in China over the past few years, becoming the country’s best-selling brand.
The Shenzhen-based manufacturer has pledged to bring its low-cost electric cars to Europe in the coming years,
including the “Seagull” model, which executives expect to sell for under 20,000 euros ($21,700).

BYD’s Chinese Factory in Turkey: A New Step Towards European Markets

BYD&#8217;s Chinese Factory in Turkey: A New Step Towards European Markets

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BYD’s Chinese Factory in Turkey: A New Step Towards European Markets