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Japanese Honda to resume manufacturing in Türkiye, following Chinese BYD’s lead

Honda dealership sign against blue sky File photo shows the Honda logo displayed on the exterior of a dealership. (Adobe Stock Photo)
By Ali Celik
Feb 21, 2025 9:22 AM

One of Japan’s motor vehicle giants, Honda, plans to resume manufacturing in Türkiye by establishing a motorcycle plant, the company’s deputy manager in Türkiye, Bulent Kilicer, stated.

The location has not yet been decided; however, rumors are intensifying about a potential investment in one of the Aegean cities.

Chinese electric vehicle giant BYD had also invested $1 billion to establish a manufacturing plant in Manisa, one of the largest cities in the Aegean region, with an agreement signed on July 8, 2024.

Kilicer spoke at the launch event for the new Honda PCX model on Feb. 19.

A Honda PCX125 motorcycle
The promotional photo shows a Honda PCX125 motorcycle displayed in an urban courtyard. (Photo via honda.com.tr)

Emphasizing that the surveillance tax has increased by up to 400% at the start of 2025, Kilicer remarked that the most significant solution to mitigate the impact of these taxes is manufacturing products in Türkiye, citing the exemptions for brands that produce their products locally.

Official announcement within 1 or 2 months

“We have started feasibility studies for production in Türkiye to gain a favorable position within the taxation bracket. We will finalize these studies within 1-2 months and announce our decision regarding production,” Kilicer said.

In February, a tax bracket change specifically affecting motorcycles was implemented in Türkiye. As a result, a significant price increase for imported motorcycles has been observed starting in 2025.

A Honda PCX125 motorcycle
Promotional photo shows a Honda PCX125 motorcycle displayed in an urban courtyard. (Photo via honda.com.tr)

While some brands have directly reflected this increase in their sales prices, others are gradually raising their prices, as they were able to clear some vehicles from customs before the new taxation came into effect.

“Which model will be produced and at what capacity is something we will discuss in the coming period. As a brand, we allocate 60% of our efforts to planning out of a 100-unit project,” Kilicer said, adding that an official announcement would be made within one or two months.

Honda closed its automotive manufacturing plant in Kocaeli, Türkiye, in 2021, citing developments in the global automotive industry related to electrification and the need to ensure appropriate production capacity in response to these changes.

Last Updated:  Feb 21, 2025 3:18 PM