Turkey and BYD to Unveil $1 Billion Electric Vehicle Plant
Turkey is set to announce an agreement with Chinese carmaker BYD Co. to build a $1 billion electric vehicle (EV) plant in the western part of the country. The news comes at a time when trade tensions between China and the European Union are escalating.
Boosting BYD’s Presence in Europe
The new plant, expected to be announced by Turkish President Recep Tayyip Erdogan on Monday, will improve BYD’s access to the European Union. Turkey has a customs-union agreement with the EU, which allows for tariff-free trade. This agreement will give BYD a competitive edge in the European market.
Domestic Market Opportunities
The plant will also serve the domestic Turkish market, where electric vehicles accounted for 7.5% of car sales last year. With a population of almost 90 million, Turkey offers a significant market for BYD to tap into.
Escalating Trade Tensions
The news comes as the EU is planning to impose provisional tariffs on electric vehicles imported from China, including those from BYD. The tariffs, which will add 17.4% to the existing 10% rate, are a response to China’s trade practices.
Turkey’s Shift in Trade Policy
Turkey recently announced that it would not impose an additional 40% tariff on all vehicles from China, as previously planned. This decision was made after talks between Erdogan and China’s President Xi Jinping during a meeting of the Shanghai Cooperation Organization in Astana, Kazakhstan.
BYD’s Global Expansion
BYD has been expanding its presence globally, with plans to bring its lower-priced EVs to Europe in the coming years. The company has already opened its first EV plant in Southeast Asia, in Thailand, and taken over a former Ford Motor Co. factory in Brazil. BYD is also scouting locations for a plant in Mexico.
Record Sales
BYD’s sales jumped to a record 982,747 vehicles in the second quarter, up more than 40% from a year ago. The company is mounting a major marketing push in Europe, taking Volkswagen AG’s place as a main sponsor of the European Championship football tournament.
Conclusion
The agreement between Turkey and BYD is a significant development in the electric vehicle market, particularly in Europe. The plant will improve BYD’s access to the EU market and create new opportunities for the company to tap into the growing demand for electric vehicles.
FAQs
Q: What is the significance of the agreement between Turkey and BYD?
A: The agreement will improve BYD’s access to the European Union market and create new opportunities for the company to tap into the growing demand for electric vehicles.
Q: What is the purpose of the proposed plant in Turkey?
A: The plant will serve both the domestic Turkish market and improve BYD’s access to the European Union market.
Q: Why is the EU imposing tariffs on electric vehicles imported from China?
A: The tariffs are a response to China’s trade practices, particularly its subsidies to its domestic companies.
Q: What is BYD’s global expansion strategy?
A: BYD is expanding its presence globally, with plans to bring its lower-priced EVs to Europe in the coming years. The company has already opened its first EV plant in Southeast Asia, in Thailand, and taken over a former Ford Motor Co. factory in Brazil.
Q: What are BYD’s sales figures?
A: BYD’s sales jumped to a record 982,747 vehicles in the second quarter, up more than 40% from a year ago.
Author: fortune.com
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