Chery Denies $1 Billion EV Investment Claim in Turkey Amid Mixed Signals

Turkey’s presidency recently announced that Chinese automaker Chery planned to invest $1 billion in the Black Sea region of Samsun, aiming to produce 200,000 electric vehicles (EVs) annually. This statement followed a video showcasing President Recep Tayyip Erdoğan presenting a “certificate of appreciation” to Chery International President Guibing Zhang, supposedly acknowledging the investment. Bloomberg initially carried the story, citing sources that echoed the government’s version of events.

Shortly afterward, Chery—one of China’s largest automotive firms—strenuously denied such a plan. “The report by the foreign news wire is untrue. Chery has no plans to build [a] factory in Turkey. We are seeking partnerships with a third party to expand the business in Turkey,” a company spokesperson stated.

Official Clarification From Ankara

When Reuters requested further details, an anonymous Turkish industry ministry official indicated that Chery’s partners will be funding and operating the project. According to this source, the investment would create a manufacturing facility for electric and hybrid vehicles and their components, potentially totaling $1 billion. The plant is slated for Samsun, with the goal of establishing:

• A production base for Chery-branded EVs and hybrids

• An R&D center dedicated to mobility technologies

• Potential employment for around 5,000 people

Despite these official statements, it remains unclear whether the confusion arose from a simple misunderstanding or a more deliberate spread of misinformation.

Context and Speculation

Erdoğan and Chery representatives have reportedly discussed a possible investment since September 2024, when Guibing Zhang met with Turkey’s president at a business event in Istanbul. At the same time, some observers wonder if Erdoğan’s government—facing mass protests and backlash over the arrest of Istanbul Mayor Ekrem İmamoğlu—might be leveraging news of a major foreign investment to create a distraction.

If Chery does eventually opt to manufacture in Turkey, it would join BYD, which agreed in 2024 to build a $1 billion plant in western Turkey. Chery already has an EV production line in Barcelona in collaboration with Spanish firm Ebro-EV Motors, reflecting its broader strategy to penetrate the European market—regardless of Turkish opportunities.

Why Turkey?

For Chinese automakers, establishing production in Turkey can bypass provisional EU tariffs on Chinese-built vehicles. Turkey’s customs union with the EU combined with its lower labor costs make it an appealing gateway for electric vehicle exports to the European market.