Turkey’s Interior Minister Fatih Kasir said on Friday that his government has entered “advanced negotiations” with Chinese electric vehicle (EV) giants BYD and Chery Automobile to set up factories in Turkey. . Kassir touted these factories as a way for Chinese companies to increase sales in Europe.
“We want to complete the negotiations as soon as possible. We have both come a long way,” Kassir said. Said He said this in an interview with Bloomberg News. He added that two other Chinese car companies, SAIC Group and Great Wall Motors, were also in talks to build plants in Turkey.
Kasir sweetened the deal by saying that if Chinese companies build EV factories in Turkey, they will also have “privileged opportunities for battery investment.”
Turkish Minister of Industry and Technology Mehmet Fatih Kacil (Muhammed Yaylali/Anadolu via Getty Images)
Bloomberg reported that BYD is building an EV factory in Hungary and has expressed interest in setting up another factory somewhere in Europe. The Turkish factory could help Chinese companies avoid higher European tariffs that could be imposed in response to higher tariffs in European Union countries. investigation conclusion The Chinese government’s large subsidies to automakers amount to unfair competition.
Turkey will greatly benefit from Chinese EV investment. This is because Turkey has since experienced difficulties attracting foreign investment. invade Syria Fight against Kurdish forces in 2019.
Turkey, on the other hand, has its own. Domestic EV company, Türkiye’s Otomobile Gilisim Grub (TOGG). Tog is pet project These are the words of authoritarian President Recep Tayyip Erdoğan, who became the first official owner of TOGG electric cars (actually two) in April 2023. President Erdoğan praised the delivery of domestically produced EVs, calling it “the realization of a 60-year-old dream.” It’s our country. ”
Turkish President Recep Tayyip Erdogan (AP Photo/Francisco Seco, File)
TOGG car sale pretty well It’s available through pre-order in Turkey (delivery to consumers only became available in May), and the company is looking to expand into Europe. Those ambitions could be seriously undermined if China’s giants become companies like BYD. topped with Tesla, the world’s largest EV manufacturer, will enter the Turkish market and use the Turkish market as a gateway to Europe.
most observers doubt Potential EU tariff hikes on Chinese EVs would be roughly on par with US tariffs announced German automakers in particular are concerned that China could retaliate against Europe’s high tariffs by shutting down its vast market.Germany is so afraid of angering the Chinese government that it opposes it. investigating Far from taking action against China’s unfair trade practices, China is dumping subsidized products onto European markets.
Just as China uses Mexico to circumvent U.S. import restrictions, Hungary is seen as China’s most likely beachhead to break through the tariff wall and keep cars flowing into Europe. . Turkey has some advantages as an alternative. the current China’s 40% tariff on EVs will likely be avoided if China starts manufacturing cars in Turkey.
Construction site of China Hyundai Amperex Technology Ltd.’s (CATL) electric vehicle (EV) battery factory in Debrecen, Hungary, August 16, 2023. (Akos Stiller/Bloomberg via Getty Images)
Kasir’s enthusiastic comments about progress in negotiations with China are a striking change from Turkey’s comments in November. raised In addition to these EV tariffs, various import restrictions were imposed, including strict requirements for foreign automakers to maintain service centers for their vehicles in Turkey.
In the period between President Recep Tayyip Erdoğan’s delivery of the first TOGG EV and customers getting behind the wheel for the first time, BYD nearly doubled its sales in Turkey.Turkey’s resolve to protect President Recep Tayyip Erdogan’s beloved TOGG project from Chinese competition appeared to have weakened in January with President Kasir taking office. visited China inspected EV and battery factories.
Kasir praised China’s “innovative technology” and said Turkey was keen on research, adding that Erdogan’s government may be struggling with TOGG production more than expected, and that Turkish EVs will be heavily subsidized by state subsidies. He suggested that he was losing confidence in whether he could compete with other EVs. Chinese car manufacturer.
China’s production of electric vehicle batteries has sacrificed its own small car companies to secure large factory investments from the likes of BYD and Chery, and is also tied to the tyrannical regime of the Chinese Communist Party, which does not like criticism of Turkey. It may be a consolation prize for accepting improvements.has a very ambivalent view of trade practices Countries that use tariffs to protect their domestic markets.
