Chinese electric vehicle maker BYD’s $1 billion investment in Turkey is expected to be announced at a ceremony on Monday, according to information provided to Bloomberg by a BYD executive.
In a statement in May, Minister of Industry and Technology Mehmet Fatih Cakli said advanced negotiations were ongoing for BYD and Chery Automobile to invest in Turkey.
The factory will be built in Manisa
Officials said negotiations with BYD in this regard have been completed and that the company will build a second plant in Turkey, following the first one it announced it would build in Hungary in Europe.
The signing ceremony will be attended by President Recep Tayyip Erdogan and the head of the Turkish Embassy in Manisa, Turkey, the Turkish government said in a statement.
The investment tax exemption decision was published in the Official Gazette today.
In accordance with the Presidential Decision amending the Decision on Imposing Additional Customs Duties on Imports published in the Official Gazette today, imports of automobiles of Chinese origin made with the benefit of customs duty exemptions within the scope of investment promotion certificates will be exempt from customs duties. This additional monetary obligation. Thus, those who invest in Turkey will be exempt from this tax.
An additional 40% tax was imposed on cars originating from China.
Within the scope of the Presidential Decree on Amending the Decision to Apply Additional Tariffs to Imported Goods, which was published in the Official Gazette last month, it was decided to impose an additional 40% tariff on automobiles originating from China.
Details of the regulations were shared publicly in a statement from the Department of Commerce.
The statement read:
“Taking into account the trends in the foreign trade balance and our country’s current account deficit target, and in order to expand and protect the share of domestic production in the domestic market, and at the same time encourage domestic investment and production, it has been decided, by Presidential Decree No. 8639 dated June 7, 2024, published in the Official Gazette today, to impose an additional tariff of “40% of the import value or US$7,000 per vehicle, whichever is greater” on imported conventional (internal combustion) and hybrid passenger vehicles of People’s Republic of China origin, classified under Tariff No. 8703.”
