BYD Plans US$1 Billion Turkey Factory to Skirt Tariffs

BYD has announced plans to build a US$1 billion factory in Turkey, aiming to avoid escalating tariffs on Chinese exports to key markets like Europe and the United States. The facility, scheduled to begin operations in late 2026, will have the capacity to produce 150,000 electric vehicles (EVs) and plug-in hybrids annually.

BYD CEO Wang Chuanfu highlighted Turkey's strategic advantages, including its burgeoning technology ecosystem, robust supplier network, prime location, and skilled workforce, as pivotal factors in the company's decision. He emphasized that the investment would enhance BYD’s local production capabilities and logistical efficiency.

This move is part of BYD’s broader global expansion strategy. The company, which currently sells vehicles in over 50 countries, including Australia, the UAE, and Japan, recently entered Central and Eastern Europe by delivering its first batch of EVs to Hungary earlier this year. Last year, BYD announced plans to establish its first European electric car plant in Hungary.

In South America, BYD plans to revitalize a former Ford Motor site in Brazil with a US$620 million investment. The complex in Bahia state will host three factories focused on processing locally-mined lithium and iron phosphate for vehicle production, bolstering BYD’s presence in the region.

BYD’s expansion strategy in Mexico includes finalizing plans for a new factory expected to create about 10,000 jobs. According to BYD's Mexico general director, Jorge Vallejo, speaking to Bloomberg News last month, the company is in the final negotiation stages for the facility's location. Vallejo expressed optimism about achieving sales of 50,000 EVs in Mexico, aiming to strengthen BYD's position in this rapidly growing market.

The European Union’s recent tariffs, effective since last Friday, impose duties as high as 38% on some imports, including a 17.4% tariff on BYD vehicles. Similarly, Turkey has announced tariffs of 40% on EV imports from China, prompting strategic moves by automakers like BYD to circumvent these levies.