10.06.2026 08:40
BYD, the Chinese electric vehicle giant that signed a $1 billion mega production facility agreement with Turkey last year, announced it has suspended its factory project in Manisa. The company management stated that they are prioritizing Hungary and a second facility to be established in Europe to circumvent the European Union's customs tariffs, and that there is no concrete timeline for starting production in Turkey.
One of the leading players in the global electric vehicle market, Chinese automotive giant BYD, has made a decision that will shake the automotive sector regarding its investment plans in Turkey. The company, which is accelerating its localization strategy in the European market, has halted the factory project it planned to establish in Turkey.
"NO CONCRETE TIMELINE FOR TURKEY"
The background of the decision was shared by BYD Vice President Stella Li. Giving an exclusive interview to Reuters in London, Li clearly stated that the establishment process of the production facility in Turkey has been suspended for now.
Emphasizing that the priority ranking in internal company operations has completely changed, Li highlighted that there is no concrete timeline determined for starting production in Turkey, using the words: "Currently, our company's primary priority is our investments in the Hungarian market. Our second focus will be to find a suitable location for a second facility where we can produce across Europe."
$1 BILLION PROJECT IN MANISA SUSPENDED
Last year, BYD signed a highly impactful agreement with Turkey. Under the agreement, a production facility worth approximately $1 billion with an annual capacity of 150,000 vehicles was planned to be established in Manisa. However, no infrastructure or construction activities had been initiated at the allocated site within the scope of this major project.
EU CUSTOMS TARIFFS CHANGED THE STRATEGY
It is reported that the biggest factor behind BYD's suspension of its Turkey decision is the heavy customs tariffs imposed by the European Union on Chinese-origin electric vehicles. Seeking to bypass these tariffs and become a direct manufacturer in the region, BYD is pursuing an aggressive localization strategy. The company aims to activate assembly lines at its first European factory in Szeged, Hungary, in the fourth quarter of this year.
WILL ACQUIRE IDLE FACILITIES INSTEAD OF BUILDING FROM SCRATCH
BYD's management, aiming to accelerate its European operations, has also developed a new formula to avoid the lengthy construction processes and bureaucratic costs of building factories from scratch. It has been learned that the company has intensified official contacts to acquire idle factories of established European manufacturers such as Stellantis and Volkswagen. According to insider information, production facilities in Italy and France top the shortlist BYD has prepared for these acquisitions.