BYD moves forward with EV Plant in Turkey despite China’s warnings

Chinese carmakers making inroads with car factories in West Europe are met with warnings from their home administration. Beijing fears technical know-how drainage and a “wrong” reward over import tariffs, so domestic car brands are asked for caution. Despite these flagging signals, BYD will continue constructing its EV plant in Turkey.

Beijing has warned its carmakers against nations trying to steal their automotive development and production know-how. Filtering out countries like India and Turkey, the government asks to export knock-down kits for final assembly in foreign markets instead of full-scale assembly.

These prefabricated units must protect the intellectual property of China’s expertise in electric car production. Geopolitical risk is also cited as a reason and has put Russia on this blacklist. However, the ministry appeared more amenable to investments in regions like Europe.

Talks with other Chinese OEMs

Also, Jinping’s administration doesn’t feel inclined to “reward” countries with heavy levies on imported Chinese EVs by migrating investment to the industry in those states.

Even though it looks tantalizing, businessmen are asked to consider expansion plans in these regions carefully. In Turkey, where Chinese-built EVS are subjected to a 40% tax, every investment plan must pass through the Chinese embassy.

Despite such close monitoring, BYD has decided to proceed with its $1 billion venture into Turkey, which was confirmed two months ago. It aims for an annual output capacity of up to 150,000 vehicles, creating 5,000 new jobs.

As a trade partner to the EU, cars from Turkey are free from the proposed and currently temporarily valid excess duties. Other Chinese automakers are currently discussing new investments in Turkey, highlighting the country’s appeal as a manufacturing hub for the burgeoning EV market.

Chinese production at Renault and Mercedes?

Compatriot Geely is one of the car groups actively scouting for a European site. At Frankfurt Automechanika, Vice-President of Geely Victor Yang revealed that his company is in talks with Poland. However, the press agency Reuters added that Poland doesn’t regard Geely as “an ideal partner”.

But Geely has several horses to bet on. Mimicking the in-house production of Leapmotor models at European Stellantis factories, Yang added that the route of co-production at plants from partners Mercedes and Renault and subbrand is also open. German news outlet Automobilwoche reported that this plan took Geely’s partners “by surprise”.