- BYD is stepping up efforts to gain global dominance in electric vehicles.
- The Chinese EV maker has signed a deal to build a $1 billion factory in Turkey.
- This could give BYD a way to avoid tough EU tariffs on Chinese EV makers.
BYD is stepping up efforts to gain global EV dominance.
The Chinese electric vehicle giant, which briefly overtook Elon Musk's company last year to become the world's largest electric vehicle seller, has signed a deal to build a $1 billion factory in Turkey.
The factory is expected to start production by the end of 2026 and will have an annual production capacity of around 150,000 units, according to a statement shared on X by Turkey's Minister of Industry and Technology Mehmet Fatih.
BYD did not immediately respond to Business Insider's request for comment.
This would be BYD's second planned factory in Europe, potentially giving the company a path to avoid tough tariffs the European Union imposed on Chinese EV companies last month.
Turkey is part of the EU customs union, meaning BYD cars made there could avoid the additional 17.4% tariffs that the EU has imposed on BYD cars imported from China.
BYD and its rivals are caught in a precarious position as they rapidly expand globally, as Western governments crack down on their domestic auto industries to protect them from a wave of cheap Chinese imports.
Building factories and moving production domestically could be one way to get around tough trade restrictions, but new rules could be enacted to thwart this. Plans by Chinese electric vehicle makers BYD, MG and Chery to build factories in Mexico have raised concerns among U.S. officials that they could be used as a “back door” to the U.S. market.
Philip Notard, director of insights and strategy at automotive consultancy Cox Automotive, told Business Insider that BYD's latest move is evidence of the Chinese carmaker's ambitious plans for investment internationally and in Europe.
“While tariffs may pose some obstacles, companies like BYD and Chery have strategies that allow them to quickly adapt to any challenges,” he said.
“These moves aren't just about tariffs, they're also about supply chains, regional resource efficiency and international growth,” Notard added.
BYD's growing presence in Europe is another potential headache for Elon Musk.
Tesla, which has a Gigafactory in Germany, sees Europe as one of its most important markets, but the automaker, which imports certain models to Europe from China, has also been affected by the EU's China crackdown and warned earlier this year that prices for its Model 3 cars in Europe could rise as a result.
Tesla is battling BYD for global sales, and a recent report from auto research firm Counterpoint said it is on track to be overtaken by its Chinese rival as the world's largest EV seller later this year.
