The new plant could give BYD easier access to the European Union, with which Turkey has a customs union agreement, said a Bloomberg report.
BYD (HKG: 1211, OTCMKTS: BYDDY) is reportedly nearing a deal with the Turkish government to build an electric vehicle (EV) plant there.
Turkey will soon unveil an agreement with BYD to build a $1 billion plant in the west of the country, Turkish officials said, Bloomberg reported today.
Turkish President Recep Tayyip Erdogan is expected to announce the deal on Monday at a ceremony in Manisa province, where the plant will be located, according to the report.
The new plant could give BYD easier access to the European Union, with which Turkey has a customs union agreement, the report noted.
There's also a domestic market to serve, with EVs accounting for 7.5 percent of Turkey's car sales last year and a population of nearly 90 million, the report said.
Turkey decided to impose an additional tariff of 40 percent on cars imported from China, with a minimum additional tariff of $7,000 per vehicle, to be implemented on July 7, according to a presidential decision announced on June 8.
Turkey's Ministry of Commerce said at the time that the tariffs were aimed at increasing the market share of domestically produced vehicles and reducing the current account deficit.
In March 2023, Turkey imposed an additional 40 percent surcharge on tariffs on EVs imported from China, raising the tariffs to 50 percent.
Today, Turkey eased tariffs on Chinese car imports to encourage investment, according to the Bloomberg report today.
BYD opened its first EV factory in Thailand on Thursday, and is also building a plant in Brazil and plans to build another in Mexico.
Aside from a plant in Hungary, BYD has little presence in Europe, Bloomberg's report said, adding that new factory openings underscores not only BYD's efforts, but also its determination to get closer to big markets and hedge against the threat of tariffs.
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