As the European Union (EU) prepares to officially implement increased tariffs on Chinese electric vehicles (EVs), Beijing-backed automaker BYD is making moves that may mitigate the impact of these new duty rates. BYD reportedly has plans to build a new $1 billion EV plant in Turkey, a candidate country for EU membership.
The official announcement of this deal is expected on Monday, July 8, from Turkish President Recep Tayyip Erdogan, but the news has already led to speculation that establishing a manufacturing presence in Turkey could help BYD soften the financial blow from the EU’s heightened tariffs.
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Turkey’s customs union agreement with the EU might allow BYD to reduce the financial impact of the new tariffs, facilitating the entry of their vehicles into the European market at more competitive prices. Ankara, Turkey’s capital, further incentivized BYD by dropping a recently imposed 50% tariff on Chinese EVs, a figure higher than the EU’s newly raised duty rate, in a move aimed at securing BYD’s investment.
This development comes just a day after the automaker continued its global expansion elsewhere in the world. Earlier this week, BYD opened its first EV factory in Thailand, where it already commands nearly 50% of the EV market.
