China’s Chery Motors signals production plans in Türkiye amid European expansion

Chery, the Chinese automotive manufacturer, has provided a significant update regarding its long-awaited plans to establish a production facility in Türkiye. During a recent presentation in Wuhu, China, Chery‘s International President Zhang Guibing revealed the company’s intentions to include Türkiye in its European production network alongside Italy and Spain. This announcement marks a potential shift in Chery’s strategy, which had previously focused primarily on establishing research and development centers in Türkiye.

Zhang’s presentation, attended by media representatives, including those from Türkiye, highlighted Chery’s commitment to expanding its production capabilities in overseas markets. A map showcased during the presentation indicated that Türkiye would be among the locations for planned manufacturing sites in Europe, a notable inclusion that sparked interest among industry observers.

Okan Altan, a journalist from Ekonomim Gazetesi, noted that this is the first time Chery has explicitly identified Türkiye in its formal expansion plans for Europe. He emphasized that Chery aims to establish three production centers in Europe where different vehicle models could be jointly manufactured. This shift comes after Chery’s prior focus on R&D in Türkiye, indicating a more robust commitment to production.

However, key details remain unconfirmed. The specific city for the factory’s location, the timeline for production commencement, and the models to be manufactured have not been disclosed by Chery. Recently, Zhang Guibing also met with Türkiye’s President Recep Tayyip Erdoğan in Istanbul, alongside the Minister of Industry and Technology, M. Fatih Kacır, suggesting high-level interest in facilitating Chery’s investment in the country.

Complicating Chery’s investment decision are two critical factors identified in recent months. Reports indicate that the selection of the factory’s location and Chery’s request for special privileges to manufacture internal combustion engine vehicles are causing delays in negotiations. This is particularly relevant given Türkiye’s focus on promoting hybrid, electric vehicles, battery technologies, and green investments.

Despite previous challenges in entering the Turkish market, Chery has seen substantial growth since re-entering directly in 2023. The brand sold 40,590 vehicles last year, with sales for 2024 already surpassing this figure at 47,997 units by September. Over the past two years, Chery has sold approximately 88,587 gasoline-powered vehicles in Türkiye.

Chery also planned to introduce electric and hybrid vehicles to the Turkish market this year but postponed these plans due to a newly published regulation.

Meanwhile, the spotlight is on another Chinese manufacturer, BYD, which has recently signed agreements to establish a production facility in the Manisa Organized Industrial Zone, valued at $1 billion. The project aims to produce 200,000 plug-in hybrid and electric vehicles annually and is expected to create significant employment opportunities during its construction and operational phases. The facility’s development is contingent on receiving a long-awaited investment incentive, which will allow BYD to import vehicles from China without additional customs duties.