Chinese carmaker Chery Automobile Co. will invest $1 billion in an electric vehicle manufacturing facility in Turkey’s northern Samsun province, Reuters reported on Wednesday, citing the Turkish presidency, confirming earlier reports that Ankara had been in talks with the company.
According to the statement cited by Reuters, the plant will have an annual production capacity of 200,000 vehicles. President Recep Tayyip Erdoğan hosted Chery officials at the presidential palace in Ankara and presented them with a certificate of appreciation during an official ceremony.
The announcement marks a significant step for Turkey’s ambitions to position itself as a regional automotive hub, particularly for electric vehicle production. Bloomberg previously reported that Turkey’s Industry and Technology Ministry had been in negotiations with Chery over the past year regarding the project, which would further expand the footprint of Chinese automakers in the country.
Chery’s investment follows similar plans by BYD Co., another major Chinese EV manufacturer, which announced a $1 billion plant in Turkey last year. Although Turkey is not a member of the European Union, its customs union agreement with the bloc offers a strategic advantage for Chinese manufacturers seeking to export vehicles to European markets while avoiding EU tariffs.
According to earlier reports, Turkey has allocated 1.5 million square meters of land for the facility, which will be located near the Black Sea port city of Samsun. The location would allow vehicle exports by sea to both Europe and Central Asia.
President Erdoğan had hinted last month that a Chinese automaker was considering setting up a plant in Samsun but did not name the company at the time.