Cars, all things Turkish China with Byd and Chery
After BYD, Turkey would be close to concluding an investment agreement with another Chinese car manufacturer, Chery. Ankara wants to remain a relevant manufacturing hub even in the age of electric. All the details
A few months after reaching an agreement with BYD, Turkey is said to be about to conclude negotiations with another Chinese automaker, Chery, for an investment in vehicle production in the country.
THE MEETING BETWEEN ERDOGAN AND THE PRESIDENT OF CHERY
In recent days, President Recep Tayyip Erdogan met with the president of Chery International, Guibing Zhang, during an event in Istanbul dedicated to entrepreneurs. It is not clear however – wrote Reuters based on information received from a Turkish source – what exactly the investment discussed by the parties consists of nor what the timescales are for reaching an agreement.
BYD'S INVESTMENT
In July, BYD – which competes with Tesla for global leadership in the sale of electric cars – committed to building a plant in Turkey with a capacity of 150,000 cars per year and a value of 1 billion dollars: it should come into operation in 2026 .
Turkey's Industry Minister, Mehmet Fatih Kacir, had defined the agreement with BYD as an example of the country's "potential" to be not only a center for international investment, but also a center for innovation and technology advanced green ".
Türkiye'S PLAN FOR ELECTRIC CARS
The Turkish government's program to encourage investment in the production of electric and plug-in hybrid vehicles includes extensive tax breaks and land allocations. To access the incentives, however, manufacturers must guarantee a minimum production of 150,000 units per year (the factory capacity envisaged by BYD) and must also sell a pre-established quota of cars on the domestic market.
Turkey is already home to a large automotive industry: several foreign brands such as Stellantis, Ford, Renault, Toyota and Hyundai operate on its territory, often in joint ventures with local companies. In 2023 the country produced approximately 1.5 million cars and its main export market is the European Union: being part of the European customs union, it can export cars there without them being burdened by tariffs.
The Turkish government is focusing on attracting Chinese investment to accelerate the transition to electric of its automotive industry. This attraction policy involves both an incentive program and the imposition of additional duties – the rate is 40 percent – on vehicle imports from China.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/turchia-auto-investimento-chery/ on Tue, 01 Oct 2024 14:02:19 +0000.