BYD signed a deal to build a massive $1 billion EV plant in Turkey on Monday. The news comes after BYD opened its first factory in Thailand, with others planned in Brazil and Mexico as it expands in overseas markets.
Turkey''s President, Recep Tayyip Erdogan, is expected to officially announce the deal on Monday. Officials told Bloomberg there will be a ceremony in Manisa province, where the plant will be built.
Although BYD was included, it was at the lower end, with an additional 17.4% rate. Rivals like SAIC are set to receive an extra 38.1% duties, raising the rate as high as 48.1%.
According to a study from Rhodium Group, BYD earns about 14,300 euros ($15,360) on each Seal U model sold in the EU. In China, it earns around 1,300 euros ($1,400). The report notes EU tariffs would need to be raised to 50% or higher to make an impact, but it could hurt European automakers even more.
Meanwhile, Turkey eased tariffs last week to encourage investments, including from BYD. Electric cars accounted for 7.5% of new vehicle sales in Turkey last year, opening a significant opportunity for the Chinese EV maker.
The new EV plant in Turkey comes after BYD opened its first factory in Thailand on Thursday. BYD is already the top-selling EV brand in Thailand, but the country is moving quickly toward electric cars.
BYD is a juggernaut. Here in Malta, they went from zero to a huge number of sales. Relatively speaking of course because the market is tiny but the prices are incredibly competitive and by all accounts the product is very good.
It''s also the third largest passenger car brand with a 9% share. However, recent price cuts of up to nearly $10,000 have sparked an investigation by authorities.
BYD is also building an EV plant in Brazil, with another one in Mexico likely to be announced soon. With factories in key global markets, BYD looks to accelerate its overseas expansion.
After selling 426,039 EVs in Q2, BYD was barely topped by Tesla (443,956) for the title of the world''s largest EV maker. However, a new study from Counterpoint Research suggests BYD will take the title by the end of 2024.
Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising
BYD has agreed a $1bn deal to build an electric vehicle plant in Turkey, as China''s largest carmaker looks to increase its European production and continue its overseas expansion.
The pact comes as Warren Buffett-backed BYD, the world''s second-largest EV maker after Tesla, looks to tap the large EU market at a time when Brussels is clamping down on access for cars imported from China. BYD is also building a plant in Hungary that will begin production next year and is considering a second plant in that country.
Europe is finalising higher tariffs on China-made EVs to protect local carmakers. BYD will face a total tariff rate of 27.4 per cent on EVs imported from China. Ankara has also taken steps to defend domestic car manufacturers, recently imposing an additional 40 per cent tariff on all Chinese vehicle imports.
Turkey has a large automotive industry, with foreign groups including Hyundai, Toyota, Renault and Ford operating in the country, often through joint ventures. Automakers produced about 1.5mn vehicles in Turkey last year, according to the Turkish Automotive Manufacturers Association. The country''s primary export market is the EU.
Analysts at UBS said local production in Europe was always a "possible consequence" of EU tariffs. "BYD is already investing in a plant in Hungary for that reason," they said, adding that Chinese cars produced in eastern Europe still have a roughly 25 per cent cost advantage over cars made by their big European rivals.
Mehmet Fatih Kacır, Turkey''s industry minister, said on Monday the BYD deal was a sign of the country''s "potential to be not only a centre for international investments, but also a centre for innovation and advanced green technology". Turkish President Recep Tayyip Erdoğan and BYD founder Wang Chuanfu attended a signing ceremony unveiling the deal in Istanbul on Monday, according to Turkish state media.
Kacır added that Turkey was in "intensive talks" with other automakers in Europe and Asia about investment, at a time when Ankara is seeking to attract foreign capital to give impetus to sweeping economic reforms.
BYD did not respond to requests for comment on the deal or the structure of its investment. The new plant would be capable of making electric and hybrid vehicles, and include a research and development centre, Turkey said.
In a sign of Turkey''s EV ambitions, Erdoğan last September asked Elon Musk to build a Tesla factory in Turkey. The country is also developing its own EV through a state-backed project.
About Electric vehicles evs turkey
As the photovoltaic (PV) industry continues to evolve, advancements in Electric vehicles evs turkey have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Electric vehicles evs turkey for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Electric vehicles evs turkey featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
Related Contents
