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South Korean automaker Hyundai unveiled a €55 million ($63.7 million) battery plant investment as part of a broader €715 million ($830 million) electric vehicle program in Türkiye, while French automaker Renault reaffirmed its €400 million plan to produce four new models in the country.
As two of the country's top-selling and largest-producing automakers, both companies pointed to the country's manufacturing expertise and supplier network in explaining their continued commitment to the market, according to statements this week.
Hyundai stated on Tuesday that the new battery facility will support production of the IONIQ 3 electric vehicle, which is set to enter mass production in August at the company's Izmit plant in Kocaeli Province.
The facility is expected to create over 300 jobs in its initial phase and forms part of Hyundai's broader push into electric vehicle production in Türkiye. Spanning 30,000 square meters, the plant will house 27 robots and use automated systems to assemble battery packs for electric vehicles.
The company expects to produce 27,000 vehicles this year and over 40,000 next year. Battery packs will use NMC (nickel manganese cobalt) cells sourced from Hungary and LFP (lithium iron phosphate) cells imported from China, allowing Hyundai to offer different battery configurations for the IONIQ 3.
Hyundai Motor Türkiye President and CEO Alex Kim said half of the Izmit plant had been converted for production of the IONIQ 3, the company's second locally produced electric vehicle. The company has already spent €250 million of the investments earmarked for the IONIQ 3 and future models on the new vehicle program, he told business-focused ekonomim.com.
The automaker plans to produce 28,760 units of the IONIQ 3 this year, including 28,005 vehicles for export markets. Domestic sales are expected to begin in September, with sales aimed at 10,000 electric vehicles in Türkiye this year.
Renault, meanwhile, reiterated its commitment to a €400 million investment plan announced in 2023 to produce four new models in Türkiye, including the Duster, Clio 6, and the recently launched Boreal SUV.
"When we say we will invest, we do it," Renault Group Türkiye CEO Lionel Jaillet told business-focused bigpara.hurriyet.com.tr. "In 2023, we announced that we would produce four new models in Türkiye with a €400 million investment. We are continuing with that plan with determination."
Production of the Boreal recently began at the company's Bursa plant, joining the Renault Duster and Clio 6 programs already underway in Türkiye. Jaillet noted that Turkish engineers played a significant role in the development of the new SUV.
Asked why Renault continues to invest despite challenges facing the market, Jaillet cited Türkiye's size, growth potential and industrial capabilities.
"Türkiye's production capability and the expertise of its supplier industry are very high compared with other countries," he said. "For that reason, we continue to stay here, invest here and believe in Türkiye."
The announcementS came days after BYD Executive Vice President Stella Li said the Chinese electric vehicle maker had put its planned $1 billion investment in Türkiye on hold.
The investment, announced in July 2024, aims to establish a production facility and research center in the western province of Manisa with an annual production capacity of 150,000 vehicles.
Li attributed the decision to BYD's focus on launching production at its first European plant in Hungary and its search for a second manufacturing site in Europe.
Türkiye's Industry and Technology Ministry said BYD's access to investment incentives was suspended in early 2026 after the project fell behind schedule but stressed that the investment agreement remains in force and that official procedures are continuing.
Both Hyundai and Renault rank among Türkiye's leading automotive manufacturers, topping the country's automotive industry in production, exports and sales.
Renault produced 387,113 passenger cars in 2025, accounting for 44.4% of national passenger car output, and exported 270,325 vehicles, giving it a 45.1% share of passenger car exports.
Hyundai manufactured 197,000 vehicles, representing a 22.6% share of production, and exported 156,500 units, equivalent to a 26.1% export share.
In the domestic market, Renault captured about 10.5% of total vehicle sales in 2025 with 144,331 units sold, while Hyundai held a 4.6% share with 62,913 units.
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