Erdogan Confirms Chery’s Plans for $2 Billion Auto Plant in Samsun
cherry
Turkish President Recep Tayyip Erdoğan has confirmed ongoing investment negotiations with Chinese automaker Chery, revealing that the company plans to establish a manufacturing facility in Samsun. While he did not name Chery explicitly, this marks the first time he has publicly discussed the project's location.
Major Investment in Türkiye's Auto Sector
Speaking upon his return from Malaysia, Indonesia, and Pakistan, Erdoğan stated:
“Another Chinese brand is taking steps to build a factory in Samsun. The efforts are ongoing, and our Minister of Industry and Technology, Fatih Kacır, is closely monitoring the process.”
He also referenced BYD, another Chinese auto giant that recently committed to a $1 billion investment in Manisa, saying:
"Both are globally recognized brands. The production of these vehicles in Manisa and Samsun will add a new dynamic to Türkiye’s automotive sector. We know how successful China and other Asian countries have been in the electric vehicle market."
Chery’s Investment to Surpass BYD’s
Negotiations between Türkiye’s Ministry of Industry and Technology and Chery have been ongoing for nearly a year. Minister Mehmet Fatih Kacır previously stated that discussions were in the final stages, emphasizing that Chery’s investment would exceed $2 billion—double the size of BYD’s investment.
“We want leading technology brands to choose Türkiye as an investment destination, establishing R&D, production, and exporting globally from here. We secured BYD’s investment with this vision, and we are in talks with Chery and other brands with the same objective,” Kacır said.
BYD and MG Cars Eye Expansion in Türkiye
On July 8, 2024, BYD signed a $1 billion investment agreement to build a factory in Manisa, set to become operational in 2026. The facility will have an annual production capacity of 150,000 electric and plug-in hybrid vehicles and include an R&D center for sustainable mobility technologies.
Meanwhile, MG Cars is also considering setting up a plant in Türkiye. Kagan Dagtekin, CEO of Dogan Trend Automobile, MG’s Turkish distributor, confirmed that they have been working with parent company SAIC Motor on the Turkish factory project for over a year.
Customs Duties Favor Domestic Production
Türkiye currently imposes high import tariffs on foreign vehicles:
- 50% on fossil fuel and hybrid vehicles
- 40% on electric and plug-in hybrid models
However, automakers investing in Türkiye receive significant tariff exemptions, paying only a 10% customs duty. This policy aims to boost local production and strengthen Türkiye’s position as a key automotive manufacturing hub.
