10.06.2026 23:10
In a statement made by officials from the Ministry of Industry and Technology regarding the investment process for the establishment of a production facility in Turkey by BYD, one of the leading players in the global electric vehicle market, it was stated that the investment agreement made with the company, the conditions in the investment agreement, the company's obligations, and the guarantees it provided to the state remain valid.
Chinese electric vehicle giant BYD had previously announced plans to build a production facility in Turkey with a capacity of 150,000 vehicles. In this context, allocation procedures for the investment site were carried out in Manisa in exchange for the fee paid by the company, and the investment process had begun.
Since the projected progress in the investment had not been achieved for some time, the Turkish Ministry of Industry and Technology suspended the Chinese-based company's process of benefiting from incentives at the beginning of 2026.
GUARANTEES REMAIN VALID
According to information obtained from the Ministry of Industry and Technology regarding the lack of progress in the company's investment, the investment agreement with the company, the conditions of the agreement, the company's obligations, and the guarantees it provided to the state remain valid. The Ministry continues to carry out all processes in accordance with official procedures.
OBLIGATED TO REPAY
If investments are not completed, companies are obligated to repay the incentives they received within the scope of relevant legal regulations and the commitments and guarantees they provided.
Ministry officials stated that no domestic or foreign company is subjected to any discrimination, the rules apply to everyone, and public interests are strongly secured in all processes.
WHAT HAPPENED?
Chinese automotive manufacturer BYD's Executive Vice President Stella Li said they are prioritizing production activities in Europe and that the factory planned in Turkey has been temporarily suspended.
Speaking at the company's headquarters in London, Stella Li said, "Currently, our number one priority is Hungary. Our second priority is finding a suitable location for a second production facility in Europe." Li also announced that vehicle assembly at the new factory in Hungary will begin in the fourth quarter of this year.
The factory established by the company in the southern city of Szeged will be BYD's first production facility in Europe. However, the commissioning of the factory will occur approximately one year behind the company's initial plans.
UNCERTAIN TIMELINE FOR TURKEY FACTORY
In 2024, BYD announced that it would build a production facility in Turkey with a $1 billion investment and that the factory would become operational in 2026.
However, Stella Li said construction work for the project in Turkey has not yet begun. Li stated that the factory is currently suspended and there is no clear timeline for when production will start.
BYD's sales in Europe increased by 270 percent last year, reaching approximately 188,000 vehicles. The company, one of the world's largest electric vehicle manufacturers, saw its European sales rise by 144 percent in the first five months of 2026, exceeding 100,000 units.
By producing in Europe, the company aims to avoid the European Union's additional customs tariffs on electric vehicles manufactured in China.