BYD investment ‘to have catalyst effect’

BYD investment ‘to have catalyst effect’

Taylan Özgür Dil - ISTANBUL
BYD investment ‘to have catalyst effect’

The reverberations continue from the world's largest electric vehicle manufacturer BYD choosing Türkiye for its investment after Hungary. This investment, the first of its kind in 27 years, is expected to have a ripple effect on other Chinese manufacturers who have long been in talks with Türkiye.

"There were many manufacturers from China and other countries who had question marks about investing in Türkiye,” Albert Saydam, president of the Turkish Association of Automotive Parts and Components Manufacturers (TAYSAD), told Hürriyet.

“The BYD investment has removed many of those question marks. It will undoubtedly have a catalytic effect," he added.

Saydam emphasized that BYD is a global brand sought after by European countries to draw investment.

"There is a two-phase process. In the first stage, an area of 1.6 million square meters is being considered in Manisa,” he said.

“It is a brand that aims for leadership in the world and has many strengths. As the Turkish automotive supply industry, we will do our part to make their European story a success.”

The factory to be built will also create opportunities for Turkish companies, Saydam noted.

“The first opportunity is to directly supply goods as a supplier,” he added.

“The second is to understand their technology and see what the opportunities are for us, what is open to development. With this, different foreign investors will also come."

Saydam said that the collaboration between BYD and the local companies will be very important.

"There is a lot of work to be done,” he added.

“We can produce more than 50 percent of electric vehicles in Türkiye. Let's say these vehicles are in the $30,000 range with a simple calculation. Approximately 70-80 percent of this is parts or software. Considering the capacity of 150,000 units, we are talking about an annual turnover of approximately $3 billion to $4 billion."

The most important part of this will be the supply industry,” The association president noted.

“We will learn the culture of doing business with the Chinese, with BYD,” he said.

“The Turkish automotive supply industry will do its best to make them competitive. Because we need to successfully implement this project in order to make the second phase of the investment necessary."

The announcement of BYD's investment has also stirred up the real estate market in the western province of Manisa, where the factory will be located.

A seller who placed an advertisement for his warehouse and workshop in Manisa on an advertising platform wrote the following in the advertisement description under the heading "40 minutes to BYD car factory:" "BYD's agreement to establish a factory in Manisa has been signed and economic activity in the region is increasing. Small and medium-sized manufacturers are expected to take advantage of this situation and start looking for workshops and warehouses in nearby areas." Another user also advertised his land, claiming to be close to Manisa OSB, with the headline "Land for sale near BYD factory".