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BYD to open a factory in Turkey

BYD to open a factory in Turkey

Electric car maker BYD is opening a factory in Turkey.

Tesla's rival - which boasts investments from Warren Buffet - has signed a $1 billion deal to establish a manufacturing plant in the country that will allow it to produce 150,000 units a year.

It is expected to create 5,000 new jobs and begin work by the end of 2026.

It all became official with papers signed at an event with President Recep Tayyip Erdogan and the CEO of BYD, Wang Chuanfu, in Istanbul.

The development comes after electric car makers in China face more and more pressure from the European Union and the United States government.

Last week, the EU announced plans to raise tariffs on Chinese imports - from 17.4 to 37.6 per cent in addition to the existing 10 per cent import duty - but Turkey is a member of the EU’s customs union, meaning it can avoid these extra charges.

In addition to this status, Turkey also has introduced their own 40 per cent tariff on imports from China.

In May, the Biden administration jacked up import tariffs on many Chinese-made goods, such as electric cars, solar panels, and steel.

BYD has been following a strategy of opening plants across the EU, as they revealed they would open a plant in Hungary at the end of 2023. This will be their first passenger vehicle factory on the continent, leading to thousands of jobs in the region.

Last week, they cut the ribbon on the facility in Thailand - their first one in Southeast Asia - with a speculated capacity to create 150,000 cars and lead to 10,000 jobs.

They also have intentions to open a plant in Mexico.

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