BYD plans factory in Turkey to avoid paying duties on electric cars

The Shenzhen-based manufacturer would take advantage of agreements between Ankara and Europe to cancel taxes on imports

Detail of the BYD Seagull

By: Riccardo Ciriaco

Published by: Brian Potter

Jul 8, 2024 at 8:06am ET

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China's BYD is looking for a home in Turkey in order to exploit its historical nature as a bridge between Europe and Asia and avoid tariffs on imports of electric cars made in China. The rumour is from the Bloomberg news agency, which quotes anonymous local government officials to reveal the Shenzhen-based company's strategies.

According to the American news outlet, the manufacturer is ready to set up a factory on the Anatolian peninsula, on the strength of agreements with the European Union that cancel reciprocal import-export taxes. The official announcement is expected to come very soon from President Recep Tayyip Erdogan.

Between Hungary and Turkey

It is known that the future plant will be located in the province of Manisa with construction costs of over €900 million, while models and production capacity are unknown. Both BYD and Turkey, however, refuse to comment on the rumours.

BYD Seagull

The BYD Seagull affordable electric car

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The move, however, comes both after the confirmation that Brussels will apply a surcharge on Chinese-passported vehicles entering the Old Continent (17.4% for the Shenzhen-based manufacturer, to be added to the previous 10%), and after Ankara's reversal, which had announced a similar choice, withdrawn following a meeting between Erdogan and Xi Jinping.

Thus BYD is doubling its plants in and around Europe to bypass the additional and punitive customs duties of Brussels. The factory in Turkey will in fact follow the one in Hungary, announced earlier this year and will be in operation from 2026. Cheap models such as the Seagull, also sold in Italy from next year at a price that promises to be very competitive, should be churned out there.