As the European Union (EU) prepares to officially implement increased tariffs on Chinese electric vehicles (EVs), Beijing-backed automaker BYD is making moves that may mitigate the impact of these new duty rates. BYD reportedly has plans to build a new $1 billion EV plant in Turkey, a candidate country for EU membership.
The official announcement of this deal is expected on Monday, July 8, from Turkish President Recep Tayyip Erdogan, but the news has already led to speculation that establishing a manufacturing presence in Turkey could help BYD soften the financial blow from the EU’s heightened tariffs.
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Turkey’s customs union agreement with the EU might allow BYD to reduce the financial impact of the new tariffs, facilitating the entry of their vehicles into the European market at more competitive prices. Ankara, Turkey’s capital, further incentivized BYD by dropping a recently imposed 50% tariff on Chinese EVs, a figure higher than the EU’s newly raised duty rate, in a move aimed at securing BYD’s investment.
This development comes just a day after the automaker continued its global expansion elsewhere in the world. Earlier this week, BYD opened its first EV factory in Thailand, where it already commands nearly 50% of the EV market.
[JACK AYLMER]
CHEAPER CHINESE ELECTRIC VEHICLES MIGHT BE COMING TO EUROPE-
WHETHER THE EU WANTS THEM THERE OR NOT.
JUST AS THE BLOC’S INCREASED TARIFFS ON CHINESE EVS ARE SET TO TAKE EFFECT-
BEIJING BACKED AUTOMAKER B-Y-D HAS REVEALED PLANS FOR BUILDING ITS CARS WITHIN AN EU CANDIDATE COUNTRY.
EXPECTED TO MOVE FORWARD WITH A NEW 1 BILLION DOLLAR EV PLANT IN TURKEY.
THE DEAL IS SUPPOSED TO OFFICIALLY BE ANNOUNCED MONDAY-
BUT NEWS OF IT HAS ALREADY SPARKED THEORIES THAT HAVING A PLANT SO CLOSE TO EUROPE WILL MINIMIZE THE IMPACT OF TARIFFS.
ALLOWING BYD TO TAKE ADVANTAGE OF TURKEY’S CUSTOMS UNION AGREEMENT WITH THE EU TO POTENTIALLY SOFTEN THE BLOW OF THOSE FRESHLY RAISED RATES.
ANKARA ALSO SWEETENED THE DEAL FOR BYD BY DROPPING ITS RECENTLY IMPOSED 50 PERCENT TARIFF ON CHINESE EVS — ALL TO NAIL DOWN THIS LATEST PROJECT
HEADLINES ABOUT A BYD PLANT IN TURKEY COME JUST A DAY AFTER THE AUTOMAKER CONTINUED ITS GLOBAL EXPANSION ELSEWHERE IN THE WORLD.
OPENING ITS FIRST FACTORY IN THAILAND THURSDAY, WHERE THE COMPANY ALREADY ACCOUNTS FOR NEARLY 50 PERCENT OF THE THAI EV MARKET.
CHINA IS POSITIONING ITSELF TO LEAD THE WAY IN THE WORLDWIDE ELECTRIC VEHICLE TRANSITION, DESPITE GLOBAL OPPOSITION TO BEIJING’S EV EXPANSION.
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