China to Invest $1B in Electric Vehicle Factory in Türkiye

Strait Talk
Strait Talk
23,145
0
Published 2024-07-23
On paper, it looks like a win-win situation. China, the global leader in the production of electric vehicles, is looking to expand its market share. But there's a problem. Many markets, like the US and the EU, are slapping tariffs on Chinese EVs to protect their own electric vehicle manufacturers. But there may be a way around those barriers. Türkiye, on the doorstep of the European market, is set to become the newest destination for China's EV investments.

China's leading electric car manufacturer, BYD, has signed a deal with Türkiye’s Ministry of Industry and Technology. The one-billion-dollar agreement was finalised just days after the EU imposed provisional tariffs of up to 38% on Chinese electric vehicles. BYD will establish a production facility for electric cars in Türkiye, with an annual capacity of 150,000 vehicles. The facility is expected to create up to 5,000 jobs and will start operations at the end of 2026. Given its strategic location, Türkiye, which is also banking on its domestic brand TOGG to boost its electric vehicle industry, has acted as a gateway for investors looking to access the European market.

Strait Talk, hosted by Ayse Suberker, is TRT World’s programme that features in-depth analysis of Türkiye’s role in the world.

Guests:
Einar Tangen
Political and Economic Affairs Analyst

Mark Humphery-Jenner
Associate Professor at UNSW


Subscribe:
trt.world/subscribe
Livestream: trt.world/ytlive
Facebook: trt.world/facebook
Twitter: trt.world/twitter
Instagram: trt.world/instagram
Visit our website: trt.world/
All Comments (21)
  • @amunra5330
    Well done China and Turkiye - lead the way in green tech.
  • @thraciensis3589
    Turkey has its own 2 different EV brands already. Turkey has big tech know how in so many sectors. Türkiye & China economic relationship is good for both sides!
  • @noboliNo
    Smart move by Türkiye and China
  • @SAapproves
    When US visists your country it brings lesson when China visits they invest, share technology & they don't lecture you❤
  • @Lena-vw6ye
    And that's how China does business. Everyone thought that because Turkey was able to find a huge deposit of lithium, it meant that China was not going to have control over the majority of lithium production. I said, no... China will probably build a factory right beside it and work a major long term deal of some sort with Turkey. Here it is, the investment I was waiting for, played out, perfectly. Although we haven't heard the terms in their deal as of yet.
  • @dongshengmuni
    Om…This is brilliant 🎉great move! Avoid the tariffs, gain access to both EU and MidEast markets, save on sea freight, cut down pollution from shipping, more jobs for the people, technology spillover to local EV industry and work force, consolidate local EV supply chains…money money money🎉
  • @jasonl3254
    Why is this framed as a geopolitical issue? BYD and other Chinese EV companies have their own corporate governance and make their own decisions. It’s not like the CPC of China is directing BYD in making these decisions.
  • @BobQuigley
    China has little domestic oil and gas. They realized 25 years ago that minimizing flammable fossils usage keeps money in China. China's early entry into mass production of lithium batteries for phones etc etc etc then to transportation was a natural. The greater world needs every piece of electrification machines available ASAP.
  • @mingouczjcz3800
    Trump also wants BYD to establish the manufacturing hubs in the US.
  • @andiy2521
    Congratulations to Turkey on entering the era of green technology
  • @rastoferi6012
    So thats why Turkiye enacted the EV tariff, oh Erdogan well played
  • @user-yw5hm4fy2i
    👏 Congratulations to both the Chinese 🇨🇳 and Turkiye 🇹🇷 government's leadership officials and the automobile EV business's investors 💐💯👍