Türkiye Emerges as a Key Automotive Hub

Türkiye’s strategic location bridging Asia and Europe is increasingly attracting significant foreign investment in the automotive sector. The latest example is Chery Automobile Co., which has announced a significant investment of $1 billion (approximately 927.2 million euros) in the nation.This move is expected too reinforce Ankara’s aim to become a manufacturing center serving both continents, according to a recent announcement from the Turkish Ministry of Industry.

Chery’s Aspiring Plans for Electric Vehicle Production

The investment will facilitate the establishment of a new Chery headquarters in the province of Samsun, located near the Black sea. This facility will focus on the production of electric vehicles (EVs) and related components. The planned annual production capacity is projected to reach up to 200,000 vehicles.

Beyond manufacturing, the project, which began development in February, also encompasses a research and development (R&D) center. The entire initiative is expected to generate approximately 5,000 jobs. The Turkish government has allocated 1.5 million square meters of land to support the project’s development.

Government Support and Recognition

President Tayyip Erdogan personally presented Chery officials with a certificate of recognition during a ceremony held at the presidential palace in Ankara,underscoring the government’s commitment to attracting and supporting foreign investment in the automotive industry.

The Growing Presence of Chinese Automakers

Chery’s arrival further strengthens the presence of Chinese car manufacturers in Türkiye. The nation is increasingly becoming a hub for vehicle exports to European markets.

Other major players are also making significant investments. For example, BYD, a global leader in electric vehicles, unveiled plans last year to invest $1 billion (927.2 million euros) in Türkiye. This strategic move is seen as a way to circumvent potential duty implications within the European Union,leveraging the existing customs agreement between the EU and the Turkish government.

We will continue to support all those who invest in Türkiye. We will prioritize the investments for the production of new generation vehicles.
Mehmet Fatih Kacir, Minister of Industry and Technology

Minister of Industry and Technology, mehmet Fatih Kacir, stated in February that discussions are underway with other manufacturers, including MG and Zeeker, signaling the government’s proactive approach to attracting further investment.

Türkiye’s Burgeoning Electric Vehicle Market

The Turkish market for electric vehicles has experienced substantial growth in recent years. In 2024, electric car sales accounted for 11% of all new car sales in the country. projections indicate that this figure will rise to 30% by 2032, highlighting the increasing demand for EVs in Türkiye.