China’s largest electric vehicle (EV) maker, BYD, is moving forward with its plans to open a new plant in Turkey, despite warnings from the Chinese government about the risks of investing overseas.
The company had signed a deal for the new EV plant in Turkey two months ago and has not changed its plans. The investment of $1 billion will create 5,000 new jobs and is expected to begin production by the end of 2026, with an annual capacity of up to 150,000 vehicles.
Despite China’s recent warning about the risks of overseas investments, BYD’s investment in Turkey will proceed without any issues. The Chinese commerce ministry had warned domestic automakers against investing in India, Russia, and Turkey due to geopolitical risks. However, one source revealed that the ministry is more open to investments in Europe and Thailand.
BYD has already opened its first plant in Thailand and is expecting EV sales to surge in the country over the next few years. The company is 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.
Despite intensifying competition, BYD sold a record number of vehicles in August, topping 1 million electric car sales well ahead of last year. The company has also become the seventh-largest automaker globally, surpassing Honda and Nissan in Q2. BYD hopes that local production can help ramp up overseas growth.
Source: https://electrek.co/2024/09/12/byd-green-light-turkey-ev-plant-despite-risks-overseas/