Chinese BYD to build $1 bln factory in Türkiye, SWM could be next

China's BYD, the world's largest electric vehicle producer, has signed a deal with the Turkish Industry and Technology Ministry to build a $1 billion factory, while another Chinese carmaker SWM also has investment plans.

BYD is expected to build a factory with a capacity for manufacturing 150,000 vehicles, as well as a mobility and R&D center with a total investment of $1 billion, the ministry said on July 8.

The firm is expected to begin production at the end of 2026 and create 5,000 jobs directly.

The parties signed the deal in a ceremony attended by President Recep Tayyip Erdoğan, Industry and Technology Minister Mehmet Fatih Kacır, and BYD Chairman and CEO Wang Chuanfu.

Erdogan also met with a BYD delegation in Istanbul.

Kacır said in a press release that Türkiye's efforts to bring new technologies and R&D highlight its potential to become not only a hub for international investments, but also a center of innovation and advanced green technology.

"This investment for the production of new generation vehicles with high domestic added value will strengthen our automotive industry," he said.

Türkiye, the third-largest automobile manufacturer in Europe, sees the transformation toward next-generation, environmentally friendly electric vehicles as a priority target in the automotive sector, which is the leading Turkish export sector, he underlined.

Vice President Cevdet Yılmaz said on X this new investment marks Türkiye's improved investment climate.

"We expect this investment to make a significant contribution to our exports in the medium term and further reduce our already shrinking current account deficit," he added.

The news comes days after the EU slapped additional provisional tariffs of up...