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Can BYD become biggest carmaker in Türkiye in 3 years?

Can BYD become biggest carmaker in Türkiye in 3 years? A view of the Seal U DM-i model vehicle of China’s BYD, the world's largest electric vehicle producer, during a press conference at Ciragan Palace, featuring ALJ Holding Turkiye Chairman Ali Haydar Bozkurt and BYD Turkiye General Manager Ismail Ergun, to discuss BYD's decision to invest 1 billion dollars in Turkiye on July 10, 2024 in Istanbul, Turkiye. (AA Photo)
By Newsroom
Jul 11, 2024 10:58 AM

BYD, a Chinese automotive and technology giant, has announced a $1 billion investment in Türkiye, with plans to establish production facilities in the Manisa Organized Industrial Zone.

The project aims to be completed by 2026, potentially positioning BYD as a leading carmaker in Türkiye within three years.

Investment plans and market impact

A trade deal signed between BYD and the Turkish Industry and Technology Ministry includes the construction of a facility producing electric and rechargeable hybrid cars, expected to be established at the end of 2026, employing 6,000 people.

BYD’s decision to invest in Türkiye has energized the local market. The company plans to double its number of dealerships and increase its vehicle count to 10,000 units by the end of the year.

The announcement was made during a press conference attended by Ali Haydar Bozkurt, president and CEO of ALJ Türkiye and Europe, and Ismail Ergun, general manager of BYD Türkiye.

Can BYD become biggest carmaker in Türkiye in 3 years?
ALJ Holding Turkiye Chairman Ali Haydar Bozkurt speaks during a press conference at Ciragan Palace, Istanbul, Turkiye, July 10, 2024. (AA Photo)

Boosting Türkiye’s auto sector

Ali Haydar Bozkurt highlighted the significance of BYD’s investment, noting it could attract further investments from other major brands.

The last significant automotive investment in Türkiye was 27 years ago. This new investment could usher in more opportunities, with various global brands considering Türkiye as a prime investment destination

Ali Haydar Bozkurt

He expressed his optimism about Türkiye’s potential and the positive impact of BYD’s entry into the market.

Capacity and future prospects

Ergun emphasized the company’s technological and innovative prowess. He stated that while the initial capacity is set at 150,000 vehicles, it is only the beginning.

BYD Global has recognized Türkiye’s immense potential despite its challenges. The country’s logistical advantages, robust sub-industry, and dynamic market played a crucial role in our decision

Ismail Ergun

He also mentioned plans to introduce a third model this year, likely to be electric.

Can BYD become biggest carmaker in Türkiye in 3 years?
BYD Turkiye General Manager Ismail Ergun speaks during a press conference at Ciragan Palace, Istanbul, Turkiye, July 10, 2024. (AA Photo)

Accelerated growth and expansion

Ergun outlined the aggressive growth strategy, noting that the investment will accelerate the process significantly.

We expect to bring the vehicles to market by November, reaching 10,000 units quickly. The number of models will increase rapidly, and we aim to have 20 dealerships by the end of this year, expanding to over 40 next year

Ismail Ergun

He also pointed out that the investment will exempt BYD from a 40% additional customs duty, further facilitating their expansion.

Can BYD become biggest carmaker in Türkiye in 3 years?
Officials from the Chinese company BYD, which will establish an electric and rechargeable hybrid car production facility and R&D Center in Manisa, Türkiye. (AA Photo)

Official visits and site inspections

BYD officials, accompanied by Turkish Industry and Technology Ministry representatives, visited Manisa to inspect the planned investment site. The delegation met with local authorities, including Manisa Governor Enver Unlu, who expressed his optimism about the project’s benefits for the region. The site, expected to create 5,000 jobs, is near the area previously considered by Volkswagen for a factory in 2019.

Can BYD become biggest carmaker in Türkiye in 3 years?
Officials from the Chinese company BYD, which will establish an electric and rechargeable hybrid car production facility and R&D Center in Manisa, visited the city. On the other hand, the area where the factory is planned to be established was photographed from the air. (AA Photo)

Economic and employment benefits

The new facility is projected to provide significant employment opportunities and boost exports. AK Party Deputy Group Chairman and Manisa MP Bahadir Yenisehirlioglu emphasized the investment’s importance in enhancing Türkiye’s economic potential and accelerating its growth trajectory.

Last Updated:  Jul 12, 2024 7:30 PM