Turkiye Attracts Major Global Investments, Cementing Its Role as a Key Player in the Automotive Sector
Turkiye is rapidly transforming into a global investment hub, particularly within the automotive industry. This shift is driven by strategic projects and programs that have positioned the country as a vital player in global supply chains. With its advantageous geographical location, young and skilled workforce, and rising industrial presence, Turkiye is now a top contender for global brands seeking a base for research and development (R&D) and manufacturing.
BYD’s Landmark Investment
A significant milestone in Turkiye’s journey to becoming a global investment center was marked by the announcement from BYD, the world’s largest electric vehicle manufacturer, of a $1 billion investment in Manisa. This investment is set to open new doors for the Turkish automotive sector, not merely by expanding production but by turning Turkiye into a global technology and R&D hub. The ripple effect of this investment is expected to attract more global brands, particularly in the automotive and related sectors, to consider Turkiye as their next big move.
- Job Creation: BYD’s investment is anticipated to directly create 5,000 jobs and indirectly provide employment for an additional 25,000 individuals.
- High-Value Production: The investment will focus on the production of electric and plug-in hybrid vehicles, with exports targeted primarily at European markets.
Turkiye’s Adaptation to New Trends
Turkiye has shown remarkable agility in adapting to the latest mobility and technology trends, reinforcing its position in the automotive industry’s new mobility ecosystem. The country has developed a robust R&D and innovation ecosystem, supported by strong manufacturing infrastructure, which is expected to play a crucial role in the global transformation of the automotive sector.
- Electric Vehicle Infrastructure: Under the leadership of the Ministry of Industry and Technology, the country has accelerated the deployment of fast-charging stations, reaching 20,900 charging points, with 7,600 of them being fast chargers. This infrastructure development has seen a fivefold increase in just one year.
Ongoing Investments and Future Plans
As BYD continues to advance its investment plans in Turkiye, other global brands are also laying the groundwork for significant investments:
- Chery: This Chinese automotive giant is nearing its investment decision in Turkiye, with comprehensive feasibility studies and discussions well underway.
- Skywell and MG: These brands are also exploring investment opportunities in Turkiye, further bolstering the country’s appeal as a manufacturing hub.
- DFSK: Another major player, DFSK, is increasing its presence in Turkiye, positioning the country as its “European Training Center.” This development not only highlights Turkiye’s strategic importance but also signals the potential for further investment in the region.
Turkiye as a Gateway to Europe
Many Chinese brands view Turkiye as a gateway to the European market, a sentiment echoed by their increasing interest in establishing a presence in the country. The imposition of additional customs duties on gasoline and hybrid passenger cars from China has accelerated these brands’ plans to localize production within Turkiye.
As these investments mature, Turkiye is poised to strengthen its position as a key player in the global automotive industry, offering a competitive edge to companies looking to expand their global footprint. The country’s commitment to fostering a business-friendly environment, coupled with its strategic location and robust infrastructure, makes it an increasingly attractive destination for global investors.
Source: Trthaber / Prepared by Irem Yildiz