Türkiye nears major electric vehicle investment deal with China’s Chery: Report

Negotiations are still underway between the Turkish government and Chinese automaker Chery regarding a potential investment to establish an electric vehicle (EV) manufacturing facility in the Black Sea province of Samsun, Bloomberg reported, citing sources familiar with the matter.

According to an anonymous official, the Ministry of Industry and Technology is aiming to finalize the discussions with an official agreement, and the talks ongoing for over a year are being held privately and are reportedly approaching a conclusion.

Meanwhile, key details currently under discussion include:

• Location: Near Samsun, a strategic Black Sea port city
• Investment volume: Estimated at $1 billion
• Annual production capacity: 200,000 vehicles
• Allocated land: 1.5 million square meters (16.14 million square feet)

The project is part of Türkiye’s broader strategy to leverage its geographic position bridging Europe and Asia to attract global investment and strengthen its industrial base.

In February, President Recep Tayyip Erdogan mentioned that a Chinese automaker was exploring a factory investment in Samsun, though he did not name the company at the time.

Türkiye emerges as strategic hub for Chinese EV makers

Chery’s move would expand the footprint of Chinese automakers in Türkiye, which is increasingly serving as a key export base for EVs heading to European markets. This follows a similar $1 billion investment plan announced last year by BYD, one of the world’s leading EV manufacturers, aimed at avoiding EU import tariffs by producing vehicles within the customs union.

Türkiye is not a member of the European Union but maintains a customs agreement with the bloc, offering manufacturers a significant logistical and economic advantage. Once Chery and BYD receive official investment certificates, they are expected to be exempt from high import duties, subject only to the standard 10% customs tariff.

Currently, vehicles imported from China to Türkiye are subject to high customs duties, with gasoline and hybrid models facing a 50% tariff, while electric and plug-in hybrid vehicles (PHEVs) are taxed at 40%.

The proposed facility in Samsun would allow Chery to bypass these tariffs and operate more competitively in European markets.

Meanwhile, MG Cars—through its Turkish distributor Dogan Trend Automotive—is also exploring the possibility of establishing a local manufacturing facility. According to a statement from Dogan Trend Automotive, the initiative has been in development for over a year in collaboration with its parent company, China’s SAIC Motor.