Turkiye is preparing a $1 billion electric vehicle equipment contract with China’s BYD.
Chinese electric vehicle maker BYD and Turkey have reached an agreement to build a new factory worth $1 billion, Bloomberg’s Fırat Kozok and Selcan Hacaoğlu reported.
Details of the factory to be set up in the western part of the country will be announced soon, said people with knowledge of the matter.
President Recep Tayyip Erdogan is due to announce the agreement at a ceremony on Monday in Manisa, where the factory will be built.
BYD and the Turkish presidency declined to comment.
Turkey has a customs union agreement with Europe, so the new facility could give BYD better access to the bloc and serve a domestic market where electric vehicles accounted for 7.5 percent of auto sales last year.
Tax exemption achieved
The President’s action this morning put restrictions on the additional tax of 40% or $7,000 that was imposed on auto imports from China on June 7th and that was referred to in a subsequent decision as “additional fiscal responsibility.”
Pursuant to the President’s Decision published in the Official Gazette today, Chinese-origin motor vehicles imported with the benefit of customs duty exemption within the scope of investment promotion certificates will be exempt from this additional financial liability.
