The European Union has pushed forward its plan to impose temporary tariffs on electric vehicles imported from China, adding a 17.4% tariff to BYD's current 10% tariff. Combined with the previous 10% basic import tariff, BYD's export tariff to the EU is as high as 27.4%. If BYD chooses to export to the EU from Turkey, the tariff rate will be significantly reduced.

01 Media Report the Turkish investment

According to foreign media reports, BYD has signed an agreement with the Turkish government to invest in a factory in Turkey. According to the agreement, BYD will invest about $1 billion in the factory, which will produce 150,000 electric and hybrid vehicles annually and have a research and development center. The Turkish factory is expected to start production at the end of 2026 and will create up to 5,000 jobs.

02 Statement says about BYD

According to the statement, the plant is expected to improve BYD's "logistical efficiency" as it aims to reach European customers.

BYD Chairman Wang Chuanfu and Turkish Industry and Technology Minister Mehmet Fatih Kacir signed the agreement, according to a statement emailed by the Turkish Ministry of Industry and Technology on Monday.

It is worth noting that Turkey is not a member of the European Union, but under the "Customs Union" established in 1995, Turkish-made cars enjoy preferential treatment in entering the European Union.

Last week, the European Union moved forward with plans to impose temporary tariffs on electric vehicles imported from China, adding a 17.4% tariff to BYD's current 10% tariff. Combined with the previous 10% basic import tariff, BYD's tariff on exports to the EU is as high as 27.4%, while BYD's tariff rate will be significantly lower if it chooses to export to the EU from Turkey.

On July 5, Turkey announced that it would cancel a plan announced a month ago to impose a 40% tariff on all vehicles from China, citing its efforts to encourage investment, which is obviously to attract more Chinese automakers to build factories in Turkey.

So far, BYD has established factories in nine countries outside Turkey:

Thailand factory: The factory was announced to be completed on July 4. BYD's Thailand factory was built in just 16 months with an annual production capacity of 150,000 vehicles. The factory covers processes such as stamping, painting, welding, assembly and automobile parts production. It is expected to create 10,000 jobs.

Hungarian factory: It is also under construction and is expected to be put into production within 3 years. The company will also become the first Chinese company to produce passenger cars in Europe, and its annual production capacity is expected to reach 150,000 vehicles.

Uzbekistan factory: The factory announced on June 29 that the first batch of mass-produced new energy vehicles, Song PLUS DM-i Champion Edition, officially rolled off the assembly line. The first phase plans to produce two plug-in hybrid models with an annual production capacity of 50,000 units to meet the market demand in Central Asia.

Brazil factory: This factory In March 2024, the production base complex officially started construction and is expected to be put into production from the end of this year to the beginning of next year. The first phase of the complex is expected to have an annual production capacity of 150,000 vehicles, with the initial models to be BYD Dolphin, Song Plus, Yuan Plus and Dolphin Mini.

Morocco plant: BYD's first plant in Africa, officially opened in January 2021, with an estimated production capacity of 100,000 vehicles in the first year. BYD said the plant will provide future-oriented pure electric models for the European market, further consolidating BYD's leading position in the global new energy vehicle market.

Indian plant: BYD's Indian plant is located in Maharashtra, India, and was opened in 2017 with an annual production capacity of 180,000 vehicles. The plant mainly produces BYD F0, BYD e6 and other models. In addition, BYD has also launched new energy models such as electric buses and electric taxis in India.

Vietnam plant: BYD plans to build an auto parts plant in Vietnam with an investment of more than US$250 million (approximately RMB 1.75 billion). The Vietnam plant will export parts to the assembly plant built in Thailand.

Swansea plant in the UK: battery assembly center.

Bavaria plant, Germany: center for battery module and system manufacturing.

In addition to building factories internationally, BYD has repeatedly increased its investment in the Shenzhen-Shantou Special Cooperation Zone in recent years. At the 2024 Shenzhen Shenshan Special Cooperation Zone Industrial Investment Conference, BYD stated that it had signed a contract with the Shenzhen-Shantou Special Cooperation Zone to complete the BYD Automotive Industrial Park Phase III project, with a total investment of RMB 6.5 billion to build a battery pack line and a new energy vehicle core parts factory.

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