Chinese Automaker BYD Targets 75,000 Electric Car Exports from Turkey to EU, Reports Polish Economic Institute
Chinese electric car manufacturer BYD plans to export 75,000 electric vehicles annually from its factory in Turkey to the EU market, according to the Polish Economic Institute (PIE). This move aims to take advantage of the tariff-free export agreement between Turkey and the EU for industrial goods.
Analysts from PIE Weekly highlighted the increasing activity of Chinese electric car manufacturers in the EU market, employing a strategy known as tariff jumping. This approach allows them to bypass the tariffs imposed by the European Commission (EC) in July 2024. PIE cited BYD’s plan to build a factory in Szeged, Hungary, and the partnership between Chinese automaker Chery and Spain's Ebro to produce electric vehicles at former Nissan facilities as examples.
PIE noted that the customs union between Turkey and the EU, established in 1995, facilitates tariff-free exports of industrial and agri-food products from Turkey to Europe. The institute also pointed out Turkey's growing attractiveness to foreign investors, with the country ranking 4th in the 2023 EY Europe Attractiveness Survey, ahead of Poland.
The renewed interest in Turkey is attributed to President Erdogan's return to orthodox economic policies post-2023 elections. However, the EC's temporary tariffs on Chinese car manufacturers, including BYD, Geely, and SAIC, may influence future EU-China trade dynamics. A decision on permanent tariffs is expected in October.
Source: TVP World
