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Chinese Tesla competitor BYD agrees $1 billion deal for electric car plant in Turkey

Chinese Tesla competitor BYD agrees  billion deal for electric car plant in Turkey
Chinese Tesla competitor BYD agrees  billion deal for electric car plant in Turkey

Image description, BYD’s plant in Thailand is part of its expansion outside China

  • Author, Peter Hoskins
  • Role, Business reporter

BYD, China’s largest electric car maker, has agreed a $1 billion (£780 million) deal to build a manufacturing plant in Turkey, continuing its expansion outside its home country.

According to the Turkish state news agency Anadolu, the new plant will be able to produce up to 150,000 vehicles per year.

The plant is expected to create around 5,000 jobs and start production at the end of 2026.

The contract was signed at an event in Istanbul attended by President Recep Tayyip Erdogan and BYD CEO Wang Chuanfu.

BYD did not immediately respond to a BBC request for further details on the deal.

The announcement comes at a time when Chinese electric vehicle makers are facing increasing pressure in the European Union and the United States.

As a result of the decision, BYD was subject to an additional tariff of 17.4 percent on the vehicles it supplies to the EU from China. This tariff was in addition to an import tariff of 10 percent.

Turkey is part of the EU customs union, which means that additional tariffs for vehicles manufactured in the country and exported to the EU can be avoided.

The Turkish government has also taken measures to support Turkish automakers by imposing additional tariffs of 40 percent on imports of Chinese vehicles.

Image source, Directorate of Communications of the Republic of Türkiye

Image description, The contract was signed at an event attended by President Recep Tayyip Erdogan and BYD CEO Wang Chuanfu.

The White House said the measures, which include a 100 percent border tax on electric cars from China, were a response to unfair policies and were intended to protect U.S. jobs.

BYD, backed by veteran US investor Warren Buffett, is the world’s second-largest electric vehicle company after Elon Musk’s Tesla.

The company has rapidly expanded its production facilities outside China.

At the end of last year, BYD announced that it would build a production facility in the EU member state Hungary.

It will be the company’s first car factory in Europe and is expected to create thousands of jobs.

On Thursday, BYD opened an electric vehicle plant in Thailand – its first factory in Southeast Asia.

BYD said the plant will have an annual capacity of 150,000 vehicles and is expected to create 10,000 jobs.

The company has also announced plans to build a manufacturing facility in Mexico.

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