China’s BYD signs deal to open electric car plant in Turkey

ISTANBUL: China’s electric vehicle giant BYD on Monday signed a one-billion-dollar agreement with Turkey to open a plant in the country in a move that would help it dodge new EU tariffs.

The signing ceremony in Istanbul between BYD’s CEO Wang Chuanfu and Turkey’s industry and technology minister Fatih Kacir was overseen by President Recep Tayyip Erdogan.

According to the Turkish industry and technology ministry, BYD will open a production facility with an annual capacity of 150,000 vehicles as well as a research and development centre.

The plant will provide direct employment for 5,000 people.

The news comes days after the European Union slapped additional provisional tariffs of up to 38 percent on Chinese EVs following an investigation that concluded state subsidies meant they were unfairly undermining European rivals.

Turkish-made cars enjoy beneficial access to the EU under a customs union that dates to 1995 and the Marmara region around Istanbul has become one of the leading centres of the world’s automobile industry.