Negotiations have been going on for a long time
BYD and Chery intend to spend more money on their factories in Turkey. At the same time, Turkey's Minister of Industry and Technology Fatih Kacir recently confirmed that the government is negotiating not only with BYD and Chery, but also with SAIC and Great Wall: “We would like to complete the negotiations as soon as possible. We've come a long way, — he said.
Setting up factories in Turkey could be extremely beneficial for Chinese automakers since Turkey has a customs union agreement with the European Union. New energy vehicles are selling well in the local market, accounting for 7.5% of all new vehicle sales in 2023 and expected to increase to 30.4% in 2032.
BYD Europe managing director Michael Su recently said the company is interested in a second European plant to support the facility it is currently building in Hungary. Bloomberg notes that additional European investment could help Chinese firms avoid potential tariffs they could face following an EU investigation into government subsidies.
In addition, Turkey intends to impose an additional 40% customs duty on electric vehicles made in China in an attempt to protect its only local electric vehicle manufacturer Togg.