Skip advert
Advertisement

BYD to dodge EU import taxes with $1 billion factory in Turkey

BYD’s new factory in Turkey will open before the end of 2026 and will produce as many as 150,000 cars per year

BYD Seal - front cornering

In an effort to avoid unprecedented EU tariffs on imported cars, Chinese carmaker BYD has signed a $1 billion deal to set up a factory in Turkey.

BYD is one of the several Chinese manufacturers currently facing additional import tariffs designed to curb what the European Commission describes as “unfair subsidies” from Beijing. While BYD models are, as of 5 July, being hit with an additional 17.1 per cent duty on top of the regular 10 per cent import tariff (27.1 per cent total), some carmakers, including the likes of MG, are being faced with tariffs of up to 48 per cent.

Advertisement - Article continues below

Now, in a bid to dodge such hefty tariffs that could see the price of BYD’s Dolphin supermini increase by as much as £4,000, the Shenzhen-based brand has signed a deal with the Turkish government to set up a plant by 2026 that will produce as many as 150,000 electric and hybrid vehicles per year and employ as many as 5,000 people.

While Turkey is not part of the European Union per se, it is part of the EU Customs Union and has itself implemented 40 per cent tariffs on Chinese cars in order to protect its own car manufacturing industry.

However, with this new deal, any BYD built in Turkey would not be considered ‘imported’ and would therefore not be liable for the additional import tariffs typically imposed on Chinese cars.

This comes after the EU and China agreed to open negotiations regarding the import charges, stating that a “candid and constructive” phone call had already taken place between the two nations.

The UK government is yet to comment on whether it will mirror the EU’s policy on tariffs for Chinese imports, however, Professor of Business and Sustainability at Cardiff University, Peter Wells previously told Auto Express that the UK’s economic position post-Brexit puts it in a “vulnerable position” on this issue, with the cost of potential tariffs “likely to be passed on to consumers”.

Want to cut your emissions? These are the best electric cars...

Skip advert
Advertisement
Consumer reporter

Tom is Auto Express' Consumer reporter, meaning he spends his time investigating the stories that matter to all motorists - enthusiasts or otherwise. An ex-BBC journalist and Multimedia Journalism graduate, Tom previously wrote for partner sites Carbuyer and DrivingElectric and you may also spot him throwing away his dignity by filming videos for the Auto Express social media channels.

Find a car with the experts

Skip advert
Advertisement

Recommended

BYD beats Dacia, Honda and Citroen: Chinese EV giant already outsells ‘big’ UK brands
BYD Seal - full front

BYD beats Dacia, Honda and Citroen: Chinese EV giant already outsells ‘big’ UK brands

EV sales were up slightly last month year-on-year, but overall car sales were down as buyers tried to dodge increased road tax
News
9 May 2025
Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
Best new cars coming soon - header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
8 Apr 2025
Shanghai Motor Show 2025: what all the big car brands are up to
Shanghai Motor Show 2025 - header

Shanghai Motor Show 2025: what all the big car brands are up to

The Shanghai Auto Show is now an established part of the automotive calendar – we’ve got a full list of show debuts
News
25 Mar 2025
New BYD Dolphin Surf is the UK version of the Seagull EV
BYD Seagull - front

New BYD Dolphin Surf is the UK version of the Seagull EV

BYD's entry-level electric car will aim to take on the Dacia Spring at around £15,000
News
21 Mar 2025

Most Popular

Car Deal of the Day: Sacre bleu! The Renault 5 keeps getting cheaper
Renault 5 - front full width

Car Deal of the Day: Sacre bleu! The Renault 5 keeps getting cheaper

The modern-day Super Cinq comes with a super price. It’s our Deal of the Day for 14 May
News
14 May 2025
Kia is returning to its 'Keeping It Affordable' roots
Opinion - Kia

Kia is returning to its 'Keeping It Affordable' roots

Mike Rutherford thinks new cars are simply too expensive, but some manufacturers are starting to do something about it
Opinion
19 May 2025
Best electric cars 2025: the top 10 best EVs you can buy
Best electric cars header

Best electric cars 2025: the top 10 best EVs you can buy

Thinking about making the switch to an electric vehicle? Here are the EVs that should be on your shortlist, and why…
Best cars & vans
14 May 2025