- Turkiye confirmed that BYD's investment agreement and commitments remain fully valid.
- BYD may face repayment of incentives if the planned investment is not completed.
Reports published on June 10 indicated that the Ministry of Industry and Technology of Turkiye reaffirmed that the investment agreement signed with BYD remains in force. According to the ministry, all obligations, commitments, and guarantees associated with the agreement continue to be valid. Officials also stated that if the planned investment is not completed, the company would be required to repay any incentives received in accordance with applicable legal provisions.
The clarification came after recent comments from a BYD executive regarding the company’s European manufacturing strategy. The executive indicated that BYD intends to begin series production at its facility in Hungary during the final quarter of 2026. The company is also evaluating the possibility of establishing a second production site in Europe as part of its regional growth plans.
These developments prompted speculation in some media reports that BYD could delay or place its planned manufacturing project in Turkiye on hold. The ministry’s statement was issued to address those concerns and to reiterate that the existing investment framework remains unchanged. Authorities emphasized that the commitments agreed upon between both parties continue to apply under the signed agreement.
BYD originally announced its investment plans in 2024, outlining the construction of a vehicle manufacturing facility in Turkiye. The proposed plant is expected to have an annual production capacity of 150,000 vehicles, making it a significant component of the company’s broader international manufacturing footprint and long-term expansion strategy across Europe and neighboring markets.
Frequently Asked Questions
Does the investment agreement between BYD and Turkiye remain valid?
The investment agreement between BYD and Turkiye remains fully valid according to the Ministry of Industry and Technology. Authorities confirmed that all obligations, commitments, and guarantees established under the agreement continue to apply. The ministry also stated that the legal framework remains unchanged despite recent speculation regarding potential project delays. If the planned investment is not completed, BYD would be required to repay any incentives received in accordance with applicable laws and regulations governing the agreement.
Why has there been speculation about BYD's planned factory in Turkiye?
Speculation emerged after a BYD executive stated that the company plans to begin series production at its Hungary facility in the last quarter of 2026 and is exploring a second European manufacturing site. These comments led some media outlets to suggest that the Turkiye project could be delayed or placed on hold. In response, Turkish authorities clarified that the original investment agreement remains active and that all commitments associated with the project are still in effect.
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