BYD suspends $1 billion Turkey plant plan, shifts focus to Hungary

Chinese electric‑vehicle maker BYD announced a $1 billion factory in Manisa, Turkey, with an annual capacity of 150,000 cars, an R&D centre and up to 5,000 jobs. The investment was unveiled in 2024 at a ceremony attended by President Erdoğan.

In 2024 BYD halted construction, saying its priority is a plant in Hungary and a second European facility, and gave no timetable for the Turkish project. Turkish ministry sources say the incentive approval process has been paused until early 2026, although the agreements and guarantees remain in force.

Since 2023 BYD has sold more than 61,000 vehicles in Turkey, benefiting from tax breaks that analysts estimate saved $7,500‑$11,000 per car. Critics argue the incentives hurt domestic EV maker Togg, which sold about 39,000 units and faces multi‑billion‑lira losses. A parliamentary inquiry has been launched to question the industry minister about the size of the tax advantages and possible sanctions.