Türkiye turns into center of attraction for global investments
Türkiye is moving forward to becoming a center of attraction for global investments as the nation has captivated the interest of many international carmakers thanks to the various projects and production programs implemented in recent years.
The country plays an active role in global supply chains as numerous factories are being established, and the nation’s advantageous geographical location and its young and qualified workforce attract global brands to invest and turn Türkiye into a research and development base.
For instance, Chinese electric vehicle (EV) maker BYD, which also happens to be the largest EV maker worldwide, invested $1 billion (TL 33.9 billion) in Türkiye, ushering in a new era in the nation’s automotive industry by setting off a “domino effect” for other companies in many sectors, but especially in automobiles, to follow suit and invest in Türkiye.
BYD’s investment is expected to create jobs for 5,000 people directly and 25,000 indirectly by producing EVs and exporting them from Türkiye while providing many opportunities for investments in other sectors with supply links with the automotive industry.
As the technology trends of the world change and develop, Türkiye keeps pace with its rapid advancements, as the nation has built its own research and development, as well as an innovation ecosystem, from the ground up, thereby putting Türkiye on the world map.
Namely, the installation of fast charging stations has been supported under the leadership of the Ministry of Industry and Technology, paving the way for the widespread use of environmentally friendly electric vehicles across the country.
With the support provided by the ministry, the network has been expanded to reach 20,900 charging points, 7,600 of which are fast chargers. Additionally, the rapid charging infrastructure has been increased fivefold in one year.
BYD, other carmakers’ interest
The Turkish government imposed additional customs duties on Chinese combustion engine and hybrid passenger cars to protect and boost the country’s domestic market, which bore fruit as Chinese carmakers announced their investment plans in Türkiye.
After BYD, the Chinese carmaker Chery came to the fore with investments in Türkiye, as the firm has been in the country for some time.
Additionally, EV makers Skywell and MG continue their investments in Türkiye, while the Chinese carmaker DFSK’s Turkish team started training for the company’s European operations.
Meanwhile, Chinese battery maker Ganfeng Lithium also signed an agreement with the Turkish firm Yiğit Akü to invest $500 million in Türkiye.
The deal was inked to expand the market reach of the two companies and to jointly promote international trade in lithium-ion batteries, battery modules, and more via establishing a joint venture in Türkiye, according to Yiğit Akü’s statement on the Public Disclosure Platform (KAP).
All this is expected to reflect further on foreign direct investment (FDI) in Türkiye as authorities aim to increase Türkiye’s share of global investments in the coming years.
Commenting on Anadolu Agency’s (AA) report, Treasury and Finance Minister Mehmet Şimşek pointed out related statistics regarding the investments in the country.
“Large global companies choose our country for their electric vehicle, battery and logistics investments,” he said in a post on X on Wednesday.
“A total of $266.9 billion of direct investment inflow was realized in the 2003-2024 June period,” he added.
“Our share of global direct investments, which was 0.2% before 2003, increased to 0.9% in 2003-2023. Our target in our International Direct Investment Strategy is to increase this rate to 1.5% by 2028,” the minister said.
“With our program’s twin transformation policies and high value-added production, we will transform our country into a larger production base, increasing our growth potential and the welfare of our citizens.”
