Erdogan reveals details of Chery’s planned investment in Türkiye for first time

President Recep Tayyip Erdogan revealed the details of ongoing investment negotiations with Chinese automaker Chery, for the first time stating that the company plans to establish a manufacturing facility in Samsun, without publicly disclosing the company’s name.

“Another Chinese brand is taking steps to build a factory in Samsun. The efforts are ongoing, and our Minister of Industry and Technology, Fatih Kacir, is closely monitoring the process,” President Erdogan said on Friday, on his return from visits to Malaysia, Indonesia, and Pakistan.

Referring to another Chinese automotive giant, BYD, which recently committed to a $1 billion investment in Manisa, Erdogan added:

Both are globally recognized brands. The production of these vehicles in Manisa and Samsun will add a new dynamic to Türkiye’s automotive sector. We know how successful China and other Asian countries have been in the electric vehicle market.

President Recep Tayyip Erdogan

Ongoing negotiations with Chery

Negotiations between Türkiye’s Ministry of Industry and Technology and Chery have been ongoing for nearly a year. Minister Mehmet Fatih Kacir said in a statement at the end of January that discussions were in the final stages, emphasizing that the scale of Chery’s investment would surpass $2 billion—double the size of BYD’s.

“We want leading technology brands to choose Türkiye as an investment destination, establishing R&D, production, and exporting globally from here. We secured BYD’s investment with this vision, and we are in talks with Chery and other brands with the same objective,” Kacir stated.

On Jul. 8, 2024, BYD signed a $1 billion investment agreement to build a factory in Manisa. The facility, expected to become operational in 2026, will have an annual capacity of 150,000 electric and plug-in hybrid vehicles and will include an R&D center for sustainable mobility technologies.

Meanwhile, MG Cars has also been considering setting up a factory in Türkiye. Dogan Trend Automobile CEO Kagan Dagtekin, the Turkish distributor partner of MG Cars, said the company had been collaborating with its parent company, SAIC Motor, on the Turkish factory project for over a year.

Currently, Türkiye imposes a 50% customs duty on imported fossil fuel and hybrid vehicles, along with an additional 40% on electric and plug-in hybrid vehicles. However, automakers that invest in the country are exempt from these extra tariffs and are only subject to a 10% customs duty.