China Strikes $1 Billion Deal with Turkey – Will BYD's Investment Shake Up the European Auto Market?

Last month, amid the European Union's deliberations on imposing heavy taxes on Chinese electric vehicles, Türkiye abruptly took stringent measures against the Chinese auto industry. They announced a steep 40% tariff on all Chinese car imports, with no vehicle allowed a tariff below $7,000. This policy posed a severe threat to Chinese automakers dependent on the Turkish market. Yet, unexpectedly, this policy was revoked within a month, and Türkiye entered into a $1 billion cooperation agreement with China's BYD company.

This agreement sees BYD investing in a massive automobile production base in Türkiye, with an anticipated annual output of 150,000 vehicles. Some industry observers suggest that Chinese auto companies have cleverly circumvented EU tariff sanctions through this deal. Why did Türkiye suddenly reverse its stance on sanctions against China? And how will China's establishment of an automobile production plant in Türkiye challenge EU sanctions?

China's auto industry began its development in the 1980s, primarily through the introduction of foreign technology and collaborative production. By 2023, China's automobile production and sales reached 30 million vehicles, with new energy vehicles accounting for 9.6 million. Notably, China's performance in automobile exports has been outstanding, with a total export volume of 4.91 million vehicles. Chinese automakers have begun establishing production bases worldwide, with significant investments in the US, Germany, and now Türkiye.

The Turkish government has shown strong enthusiasm and support for Chinese electric vehicle companies' investments. Experts believe that once BYD's auto factory in Türkiye is completed, it will have an annual production capacity of 150,000 vehicles, significantly boosting BYD's competitiveness in the European and Middle Eastern markets. This move could potentially render the EU's high tariffs on Chinese cars ineffective. The Turkish government and BYD's cooperation highlight the strategic advantages of investing in Türkiye for broader market entry, leveraging Türkiye's customs union agreement with the EU.

#BYD #TurkishAutoIndustry #ElectricVehicles #EUTradeSanctions #AutomobileProduction

[markmahan]

You know I found out a startling fact about BYD. The BYD factory in China is fully automated. And can produce a car in 73 seconds. That means one minute 13 seconds to roll out a car. How bonkers is that?

[wongsiang]

Tukiye has made a most perfect decision to allow BYD to start up a factory in Turkey whereby creates employment for the Turkey population 👍👍👍💪as China creates win and win situation

[teddyhoukamau]

If Turkey Joins BRICS!
Can Turkey bypass the sanction with the new BRICS payment system, it would be very good to keep low prices on China's cars to be affordable for the Average workers, so everyone in Turkey can have the EVs.
It would also be A good deal to build alot of charging stations for Turkey more then gas stations and fast home charging units as well! This will make charging easier for the consumer or maybe selling fast chargers with the EVs,
Thank you China for your hard work and innovation!

[larsnystrom]

Not only are they avoiding the EU tariffs, they also avoid rewarding tthe EU by giving them jobs.
When someone acts as your enemy, rewarding them for it is a bad thing!
China strives for win-win, but they are pretty good at lose-lose too.

[picandvideo]

China built HSR, nuclear power plant there also 🤔

[-vvrv]

How do most of you guys still make profit, even with the downturn of the economy and ever increasing life standards