Turkey is in talks with Chinese electric vehicle (EV) makers BYD and Chery Automobile to invest in factories in the country, which could help both companies expand sales in Europe, Bloomberg reported on Friday. Reported.
“We want to complete the negotiations as soon as possible. We have both come a long way,” Industry and Technology Minister Fatih Kasir told Bloomberg in an interview in Ankara. He said separate negotiations were also underway with SAIC Group and Great Wall Motors, which own MG.
BYD, Chery, SAIC Motor and Great Wall Motors did not respond to Bloomberg’s requests for comment.
This could give Chinese automakers easier access to the EU, which has a customs union agreement with Turkey. Turkey is itself a major market, with EVs accounting for 7.5% of total car sales in 2023.
The country’s energy market regulator expects the number of EVs in the country to increase by about 180,000 by 2025. BMI researchers predict that the share of EVs in Turkey’s domestic car sales will reach 30.4% in 2032.
Michael Hsu, managing director of BYD Europe, said last week that there is scope to build a second factory in Europe in 2025, in addition to the factory already under construction in Hungary.
The European investment could help BYD avoid new import duties stemming from an EU investigation into state subsidies for Chinese EV makers. Turkey also imposes additional taxes on most EVs produced abroad.
Turkey’s government is seeking to isolate Tog, the country’s first domestic EV maker, from competition until the new brand becomes established in the country’s market, Europe’s fourth largest as of the fourth quarter.
A final investment decision by either of the two Chinese companies would be a boon for the Turkish government. Turkey’s government has long tried to leverage its location between Asia and Europe to attract foreign investment in manufacturing, but so far has had little success.
One notable loss was Volkswagen AG’s decision to cancel planned factory investments in 2019 after the country’s military action in northern Syria sparked an international backlash. is.
The minister said Turkey is an ideal base for exports to the EU thanks to its customs union with the EU and its sophisticated automotive industry. Cars were Turkey’s top export last year, with the country selling $35.7 billion worth of vehicles and spare parts in 2023, up from $21.6 billion a decade ago, according to data from the Automotive Industry Association.
Kasir told Bloomberg that a decision to open a car factory in Turkey would also give Chinese companies “a privileged opportunity to invest in batteries,” adding that it was unclear whether negotiations would lead to a final investment decision. He added that there was no.
TOGG and China’s Farasis Energy are also building a battery factory in the northwestern Turkish city of Bursa in a joint venture.
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