Turkey promises billions more for e-vehicle ambitions

President Recep Tayyib Erdogan unveiled a $4.5 billion incentive programme for battery producers while attending a high-tech fair in Istanbul.

The country will also offer $5 billion for carmakers to build EVs in Turkey, with a goal of producing at least one million vehicles a year, he said.

“We have made battery production a priority area for our automobile industry in order to stay competitive,” Erdogan said.

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The new public money comes on top of a $5 billion subsidy programme for computer chips, bringing Turkey’s total spending on EV development to $15 billion.

“Our goal is to attract investments in next-generation vehicles, as well as R&D and engineering activities, to our country,” Erdogan said.

He also announced subsidies totalling $4.2 billion to develop solar and wind energy technologies.

Turkey plans to draw on its geographical position and an EU customs deal to entice Chinese investors looking to access European markets tariff-free, as it did in early July with EV giant BYD.

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Five other Chinese car makers are considering investing in the country, at the crossroads between Europe, the Middle East and Central Asia, according to the state-owned agency Anadolu.

Turkish manufacturer TOGG and Chinese firm Farasis have also partnered to produce EV batteries in Turkey.

First Published Date: 27 Jul 2024, 16:26 PM IST