Continuing its international expansion, BYD, China's largest electric vehicle manufacturer, has signed a $1 billion agreement to construct a factory in Turkey.

The new plant will be capable of producing up to 150,000 cars annually, according to the Turkish news agency Anadolu. It will create approximately 5,000 jobs and is set to begin production by the end of 2026. The agreement was signed at a special event attended by Turkish President Recep Tayyip Erdoğan and BYD's CEO Wang Chuanfu.

This investment comes at a time when both the European Union and the United States are increasing pressure on Chinese electric vehicle companies. Just last week, BYD faced an additional 17.4% tariff on vehicles it exports from China to the EU, which were already subject to a 10% import tariff.

Chinese companies aim to take advantage of the Turkey-European Union Customs Union. Vehicles manufactured in Turkey can avoid the additional 17.4% tariff when sold in EU countries.

However, it should be noted that Turkey has also imposed a 40% tariff on the import of Chinese cars to support its domestic automotive industry. Meanwhile, the United States has levied a 100% tariff on Chinese electric vehicles.

The factory in Turkey is the second major international investment announced by BYD within a few days. Last Thursday, it opened its first plant in Thailand, which will have an annual production capacity of 150,000 vehicles and is expected to create 10,000 jobs. Plans are also underway for the construction of a new factory in Mexico.