Springboard to EU? BYD poised for US$1 billion electric car plant in Turkey, officials say

There’s also a domestic market to serve, with EVs accounting for 7.5 per cent of car sales last year in Turkey, a country with a population of almost 90 million.

Turkey announced Friday that it was walking back plans announced almost a month ago to impose an additional 40 per cent tariff on all vehicles from China, citing efforts to encourage investment. That decision followed talks between Erdogan and China’s President Xi Jinping on Thursday during a meeting of the Shanghai Cooperation Organisation in Astana, Kazakhstan.

BYD has been on a tear the last several years in China, becoming the nation’s bestselling car brand. The Shenzhen-based manufacturer has vowed to bring its lower-priced EVs to Europe in the coming years, including the Seagull hatchback that executives expect to sell for less than €20,000 (US$21,700).

The carmaker opened its first EV plant in Southeast Asia on Thursday, in Thailand. BYD has also taken over a former Ford Motor factory in Brazil and been scoping out locations for a plant in Mexico. Its first car factory for Europe, in Hungary, is under construction.

BYD’s sales jumped to a record 982,747 vehicles in the second quarter, up more than 40 per cent from a year ago. While the company’s sales in Europe have been sluggish thus far, it’s mounting a major marketing push in the region, taking Volkswagen’s place as a main sponsor of the European Championship football tournament.