China's largest electric vehicle manufacturer, BYD, is making a massive investment in Turkey.

The Chinese company BYD, the world's largest electric vehicle manufacturer, has signed an agreement worth approximately $1 billion with the Ministry of Industry and Technology in Turkey. President Recep Tayyip Erdogan attended the signing ceremony of the agreement between BYD and the Ministry of Industry and Technology, which is aimed at investment in Turkey.

According to the Ministry of Industry and Technology, the signing of the agreement for this massive investment took place at the Presidential Dolmabahce Office, under the patronage of President Recep Tayyip Erdogan, and was signed by Minister of Industry and Technology Mehmet Fatih Kacir and BYD Chairman Wang Chuanfu.

$1 BILLION INVESTMENT

As part of the agreement, BYD plans to establish an electric and rechargeable hybrid car production facility with an annual capacity of 150,000 vehicles and an R&D center for sustainable mobility technologies in Turkey with an investment of approximately $1 billion. The facility, which is expected to start production by the end of 2026, aims to provide direct employment for up to 5,000 people. BYD, which is at the forefront of electric vehicle sales with an annual production of approximately 3 million vehicles, expects its investment in the new production facility to enhance its local production capabilities and logistics efficiency, thanks to Turkey's developing technology ecosystem, strong supplier base, exceptional location, and qualified workforce. It also aims to reach consumers in Europe with the increasing demand for new energy vehicles in the region.

"THIS INVESTMENT WILL STRENGTHEN OUR AUTOMOTIVE SECTOR"

In a statement, Minister Kacir expressed his satisfaction with the agreement. Kacir stated, "We are pleased with the investment decision of the global leading brand BYD in electric vehicle and battery technologies in our country. This investment decision is the result of long-standing discussions and consultations since our visit to China in December, where we witnessed firsthand the 110,000 engineers of BYD producing 32 patents per day. Our efforts to bring new technologies and R&D to Turkey emphasize our country's potential not only as a center for international investments but also as an innovation and advanced green technology hub. This investment in the production of next-generation vehicles with high domestic added value will strengthen our automotive sector."

"TURKEY WILL BE THE LEADING COUNTRY IN THE AUTOMOTIVE SECTOR'S TRANSFORMATION"

Kacir emphasized that in Turkey, which is the third-largest automotive manufacturer in Europe, with an annual export value of over $35 billion, the transformation towards next-generation and environmentally friendly electric vehicles is seen as a priority. He continued, "In this context, our national brand Togg has been a pioneering step for our country. The investments of other brands that are currently manufacturing in our country are also supported by our Ministry. We have ensured the rapid proliferation of charging stations, which are important factors in supporting the widespread use of electric vehicles, in all our cities. With new investments, Turkey will be the leading country in the transformation of the automotive sector."

"THOSE WHO TRUST AND INVEST IN TURKEY WILL CONTINUE TO WIN"

Kacir highlighted that they witnessed a historic day for the Turkish automotive industry, stating that there are 13 brands, including 8 global brands, manufacturing in the automotive sector. He stated that vehicle production, which was around 300,000 in 2002, exceeded 1.4 million last year. He said, "We have always supported the capacity increases of our existing manufacturers. In addition, we have increased our efforts to attract new brand investments to our country. BYD's investment decision is the result of the investor-friendly policies led by our President and the support we provide to investments. Turkey is a gateway for investors to access the European market through the Customs Union and many export markets with which it has signed free trade agreements with 23 countries. Those who trust and invest in Turkey will continue to win."

INVESTMENT SIGNAL GIVEN 1 YEAR AGO

Minister Kacir had given a signal for this billion-dollar investment about a year ago. In a broadcast he attended on July 27, 2023, he stated, "Turkey's doors are open to any brand or company that will add value to this country. There are European brands that want to produce in Turkey, as well as Far East brands. We are in intense discussions with them. Hopefully, we will make efforts to bring together that land in Manisa with an investment and to attract other investments to our country. In the coming period, we will bring new global investments to Turkey."

During his visit to companies manufacturing in China in December 2023, Kacir hinted that the discussions would turn into investments and made the following evaluation: "In 2022, there were 23 million sales of electric and rechargeable hybrid vehicles worldwide. 60% of this, which is more than 14 million, took place in China. This allowed Chinese automotive companies to surpass the world in innovative technologies, especially in the field of electric vehicles. As a result, many Chinese companies have become able to export the electric vehicles they develop and produce not only to the Chinese market but also to global markets. In the coming period, we will witness the emergence of new players in the automotive market in many countries."