Turkey seeks to recover $1 bn BYD incentives after plant plan stalled

Chinese electric‑vehicle manufacturer BYD had signed an agreement with Turkey's Ministry of Industry and Technology in 2024 to build an automotive factory in Manisa with a capacity of 150,000 vehicles per year, slated to open by the end of 2026. After two years without any progress, BYD announced that it had suspended the $1 billion investment.

The Turkish government has now opened a legal procedure to reclaim the project‑based incentives granted to BYD. According to Industry Minister Mehmet Fatih Kacır, the incentives will be recovered through the activation of BYD's guarantee letters and the collection of customs duties, plus interest, that were previously waived under the investment programme. The issue was also raised in parliament, where the minister reaffirmed that all public interests are secured under the incentive framework.