Türkiye in final stages of investment talks with Chinese carmaker Chery
The Chery TJ-1 is displayed at the Auto Shanghai show, in Shanghai, China April 18, 2023. (Reuters/Aly Song)
Türkiye is in the final stages of negotiations with Chinese automaker Chery on a potential investment, a Turkish official said, as Ankara seeks to strengthen ties with Chinese car manufacturers.
Türkiye in final stages of investment talks
This development follows a $1 billion deal with China’s BYD earlier this year to establish an electric vehicle (EV) plant in Türkiye.
The Turkish official, who requested anonymity, did not provide specific details on the scale or product focus of Chery’s potential investment, nor did they confirm a timeline for reaching a final agreement. “Negotiations are ongoing, and we are optimistic about the outcome,” the official stated.
BYD’s earlier investment
In July, Türkiye announced that Chinese EV manufacturer BYD agreed to invest $1 billion to build a production facility in the country. The plant, which will have an annual production capacity of 150,000 vehicles, is set to accelerate Türkiye’s transition to EV manufacturing.
Türkiye’s presidency revealed on Saturday that President Recep Tayyip Erdogan met with Chery International President Zhang Guibing during an investment event in Istanbul. Industry and Technology Minister Mehmet Fatih Kacir was also present at the talks.
Chery was not immediately available for comment on the status of the discussions.
Government incentives for EV manufacturers
Türkiye provides attractive incentives for foreign investors, including land allocation, extensive tax breaks, and additional support for the establishment of plug-in hybrid and electric vehicle production plants.
The investment support program requires a minimum production capacity of 150,000 units per year and permits tariff-free sales of a designated number of vehicles in the local market.
Automotive production hub
Türkiye, home to major automotive manufacturers such as Ford, Stellantis, Renault, Toyota, and Hyundai, is capable of producing up to 2 million vehicles annually. According to data from automotive manufacturers associations, approximately one-third of the country’s production capacity is dedicated to commercial vehicles.
As part of its efforts to expand its manufacturing base, Türkiye has been courting Chinese car manufacturers to help bolster its automotive industry and accelerate the transition to EV production.
