Chinese electric vehicle manufacturer BYD’s investment in Turkey is proceeding without any problems, Turkish industry ministry sources told Reuters on Thursday when asked about China’s warning to its companies about the risks of investing overseas.
Discussions are underway with other Chinese carmakers for new investments, the sources added, requesting anonymity.
Citing two people briefed on the matter, Reuters also reported on Thursday that China’s commerce ministry recently warned the country’s carmakers of the risks of making auto-related investments overseas.
In July BYD signed an agreement to open a plant in Turkey, in a move that will help it dodge new EU tariffs.
The agreement was signed in İstanbul by BYD CEO Wang Chuanfu and Turkey’s industry and technology minister, Fatih Kaçır, during a ceremony that was attended by Turkish President Recep Tayyip Erdoğan.
According to the Turkish industry and technology ministry, BYD will open a production facility with an annual capacity of 150,000 vehicles and a research and development center, with an approximately $1 billion investment.
The news came days after the EU imposed 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 centers of the world’s automobile industry.
Major carmakers including Fiat and Renault opened plants there at the beginning of the 1970s, with others like Ford, Toyota and Hyundai following, taking advantage of Turkey’s position at the crossroads of Europe, Asia and the Middle East.