BYD Limited, the Chinese automaker known for offering affordable electric vehicles (EVs), has announced plans to build a monumental $1 billion EV plant in Turkey, marking yet another noteworthy stride in its global expansion. The strategic move of building an EV plant in Turkey follows the recent set up a manufacturing facility in the Asian nation of Thailand. Looking ahead, the company is also preparing to set up similar plants in Mexico and the Latin American nation of Brazil, which highlights its commitment to continue to expand into overseas markets.

The deal signed between the government of Turkey and BYD was officially announced by Turkey’s President, Recep Tayyip Erdogan, during a ceremony in Manisa province, where the planned manufacturing facility will be constructed. Just last week, Turkey eased tariffs in order to attract fresh investments in the EV segment. Currently, EVs accounted for nearly 7.5 per cent of new vehicle sales in the country.

The new facility is expected to give a considerable boost to local economy by generating thousands of new jobs in addition to a new stream of tax revenue for the government. As per preliminary estimates, the plant will generate up to 5,000 jobs.

The new manufacturing facility is expected to help the Chinese manufacturer in overcoming the potential impacts of European Union’s (EU’s) new tariffs on China-made EVs. It may be noted here that earlier this week, the EU imposed additional tariffs of up to 38.1 per cent on Chinese EV imports. By shifting some of its production from China to Europe, the Chinese automaker will be able to circumvent a significant part of the additional tariffs on its products.”

BYD is expanding quickly across the globe. Recently, on 4th of July, it opened a new EV manufacturing facility in Thailand, where it aims for 30 per cent of vehicles built in the country to be electric by the end of current decade. The brand already accounts for roughly 50 per cent of the Thai electric car market.

Setting up of a state-of-the-art EV manufacturing facility in Turkey will not only fortify BYD’s foothold in Europe but also strategically position it to alleviate potential impacts of new EU tariffs on Chinese EV imports. With remarkable growth trajectory and a strong global manufacturing network, the Chinese automaker is poised to further strengthen its position as a top contender in the global EV market.