Turkey’s ambition to become a major electric vehicle manufacturing center has suffered a serious setback after Chinese auto giant BYD abandoned plans for a massive factory in the western city of Manisa.
The project, valued at approximately $1 billion, was expected to strengthen Turkey’s industrial sector and create thousands of jobs. BYD will reportedly shift its European production focus to Hungary instead.
The decision was not based solely on financial incentives. Both Turkey and Hungary offered generous tax exemptions and inexpensive land, but Hungary possesses one decisive advantage Ankara cannot provide: full membership in the European Union.
That status gives Chinese manufacturers direct, secure and tariff-free access to Europe’s enormous consumer market. It also provides a presence inside the EU’s political and regulatory system as Brussels increasingly promotes “Made in Europe” policies and moves to protect European manufacturing.