The global giant has agreed to establish a supply factory in Turkey with BYD.

Forvia, the world's seventh largest automotive parts supplier by revenue, which derives a quarter of its total revenue from sales in China, announced that a supply factory will be established in Turkey in line with new agreements made with Chinese manufacturers. With the new contracts, Forvia hopes to compensate for the weakening automotive demand from local manufacturers across Europe.

Bernstein analyst Stephen Reitman commented, "Forvia's ability to do business with BYD outside of China is reassuring in terms of alleviating fears that Chinese car manufacturers will not use international suppliers like Forvia to expand their operations in Europe." Forvia's CFO Olivier Durand stated, "It is very good that we can expand our access to Chinese manufacturers with the recent agreements." Forvia had also signed an agreement for BYD's first factory in Europe, which will be opened in Hungary.

BYD WILL ESTABLISH A FACTORY IN MANISA

The world's largest electric vehicle manufacturer, Chinese BYD, signed an investment agreement in Turkey with the Ministry of Industry and Technology in July under the leadership of President Recep Tayyip Erdoğan. As part of the agreement, it is anticipated that BYD will establish an electric and plug-in hybrid vehicle production facility with an annual capacity of 150,000 vehicles and a R&D center for sustainable mobility technologies in Manisa with an investment of approximately $1 billion. The facility, which aims to start production by the end of 2026, is expected to provide direct employment for up to 5,000 people.

CHINESE BYD IS LOOKING FOR EMPLOYEES

On the other hand, the Chinese brand has posted job advertisements for Istanbul and Manisa in Turkey. In the job postings for Manisa, positions such as "recruitment specialist, HR manager, senior consultant, occupational health and safety engineer, and payroll specialist" are open for applications.

Additionally, the brand has also advertised positions for Istanbul such as "spare parts stock control and dealer support specialist, financial control and reporting specialist, after-sales value chain manager, sales accounting specialist, and senior HR specialist/HR manager (Chinese speaking)."

NEW GIANTS MAY COME TO TURKEY

Moreover, BYD's decision to invest approximately $1 billion in Turkey is expected to open the doors to a new era for the Turkish automotive industry, creating a "butterfly effect" that makes the investment environment in Turkey more attractive and serves as a reference for other brands from different sectors.

The decision to impose additional customs duties on gasoline and hybrid passenger cars of Chinese origin has also yielded results in order to increase and protect the share of domestic production in the local market and encourage investments in the country. Following the decision, Chinese brands, which often express that they see "Turkey as a gateway to Europe," have started to announce their action and investment plans.

CHERY, DFSK, SKYWELL, AND MG HAVE ALSO TURNED THEIR FOCUS TO TURKEY

Following BYD, one of the closest candidates for investment in Turkey is the Chery brand. It is reported that Chery has been working on investment in Turkey for a long time, diligently continuing all feasibility studies and discussing the entire framework in detail at the table. It is also known that brands like Skywell and MG are continuing their investment efforts in Turkey. In addition to these brands, the operations of DFSK, one of China's largest car manufacturers, continue to increase its importance as the brand's gateway to Europe. Furthermore, Ganfeng Lithium, one of the world's largest lithium battery manufacturers, signed an agreement with Yiğit Akü to invest $500 million in Turkey.