BYD Drops Turkey Factory Plan, Dealing a Blow to Ankara's EV Ambitions

Turkey’s bid to become a major electric vehicle manufacturing hub took a serious hit after BYD, the Chinese EV giant, confirmed it will not proceed with a planned factory in Manisa in western Turkey. The original project was valued at about $1 billion, but BYD has instead shifted its European production focus to Hungary, according to Maariv.

Turkey Today reported that the decision was driven not only by conditions inside Turkey, but also by broader shifts in global supply chains and the geopolitical calculations of large companies. For years, Turkish officials saw the customs union with the European Union as a key advantage that positioned the country as an industrial bridge between Asia and Europe.

That advantage is now weaker, as new EU rules promoting local production under the Made in Europe policy make it harder for Turkey to compete. Hungary, unlike Turkey, is a full EU member, giving Chinese carmakers direct, stable, tariff-free access to the European market and political leverage inside EU institutions.

The article also points to the changing technology of EV production. Since most of the value in electric cars is in batteries, chips, and software, areas dominated by Chinese companies, BYD is less dependent on local Turkish suppliers. The move follows the earlier cancellation of a large Volkswagen project in the region, and signals that low labor costs and tax incentives alone are no longer enough to attract major investments when regulatory stability, direct access to Europe, and diplomatic influence matter more.