BYD suspends $1 billion Turkey factory plan

Chinese electric‑vehicle maker BYD had pledged a roughly $1 billion investment to build a plant in Manisa, Turkey, with a capacity of 150,000 vehicles a year and an accompanying R&D centre. The project was backed by extensive state incentives, including free land, corporate‑tax exemptions and customs‑duty waivers. In recent statements, BYD vice‑president Stella Li said the company’s top priority is now Hungary and that a second European site is being explored, indicating the Turkish factory is no longer in the planning queue.

BYD has now officially placed the Manisa factory on hold, with no construction work started since the 2024 announcement. Analysts note that the suspension could trigger penalties, the withdrawal of incentives and a reinstatement of import duties on BYD cars, potentially raising vehicle prices by 25‑30 %. The move follows earlier criticism from the Turkish Automotive Manufacturers Association, which warned that a year after the investment was announced there was still no visible progress. BYD’s sales in Turkey have risen sharply, reaching over 8,000 units in 2024, but the future of its local manufacturing plans remains uncertain.