Türkiye in advanced talks with China's BYD, Chery for EV plants

REGION  17 May 2024 - 19:12

Industry and Technology Minister Mehmet Fatih Kacır on Friday said Türkiye is in advanced discussions with Chinese electric carmakers BYD and Chery Automobile for factory investments in the country.

"We would like to complete the talks as soon as possible. We have come a long way with both of them," Kacır said in an interview with Bloomberg News, according to Daily Sabah.

He added that separate negotiations with SAIC Motor, which owns MG Motor, and Great Wall Motor are also underway.

The development comes as the European Commission is investigating whether fully electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.

BYD, Chery and Great Wall Motors did not immediately respond to a request for comment, while SAIC could not be immediately contacted.

"There is significant interest by global brands for the production of electric cars in Türkiye. Türkiye's membership in the European Union's customs union is still a big advantage for many global brands," Kacır had previously said.

In December, Kacır visited eight different Chinese cities and engaged with automotive and battery manufacturing companies, including GAC AION, Chery, Zeekr, BYD, SAIC, Fararis Energy and Huawei.

Farasis is establishing a battery cell production facility in northwestern Bursa's Gemlik district in collaboration with Togg.

Türkiye in 2023 had imposed a 40% additional tariff on imports of electric vehicles from China.

EV sales in Türkiye hit a record of 65,562 units in 2023, constituting 6.8% of the total auto sales.

The record share was driven by the first homegrown EV brand, Togg, and the entry of new players like Tesla and BYD.

Sales of EVs in the first four months of this year rose by more than 270% to over 20,250 units, according to the Automotive Distributors and Mobility Association (ODMD).

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