China’s largest EV maker, BYD, is charging ahead with its plans to open a new plant in Turkey. BYD’s EV plant in Turkey will continue despite China’s recent warning of the risks of investing overseas.
BYD to continue with Turkey EV plant investment
After signing a deal for a new EV plant in Turkey two months ago, BYD’s plans have not changed.
BYD is investing $1 billion in the country, creating 5,000 new jobs. The plant is expected to begin production by the end of 2026 with up to 150,000 annual production as BYD expands outside of China.
According to Turkish industry ministry sources on Thursday, BYD’s investment in Turkey will proceed without any issues.
The sources were referring to China’s recent warning about the risks of overseas investments. As reported by Reuters earlier today, China’s commerce ministry warned domestic automakers about pouring money into overseas plants.
In July, the ministry told automakers to avoid investing in India and “strongly advised” against committing resources to Russia and Turkey due to geopolitical risks.
One of the sources said the ministry was more open to investments in Europe and Thailand. BYD opened its first plant in Thailand in July with EV sales expected to surge in the country over the next few years.
Domestic automakers like BYD are looking overseas to sustain growth and overcome China’s aggressive EV price war.
With the US and Europe imposing higher tariffs on EVs imported from China, Chinese automakers are investing in Thailand, Southeast Asia, and South America.
BYD is also reportedly waiting for the US election in November to announce its planned EV plant in Mexico.
Despite intensifying competition, BYD sold a record number of vehicles in August, topping 1 million electric car sales well ahead of last year. After topping Honda and Nissan in Q2, BYD became the seventh-largest automaker globally. Can it climb even higher? BYD hopes local production can help ramp up overseas growth.
Source: Reuters
