Chery to Establish Production Facility in Turkey, Bolstering Electric Vehicle Ecosystem

Turkey’s automotive industry is poised for significant expansion with the announcement that Chinese automobile manufacturer Chery will commence production in the country. The Ministry of Industry and Technology revealed that Chery’s investment will be centered in Samsun, a city strategically located on the Black Sea coast. The new facility is projected to have an impressive annual production capacity of 200,000 vehicles.

This development underscores Turkey’s growing prominence as a hub for automotive production and innovation, particularly within the rapidly evolving electric vehicle (EV) sector. The announcement was made during the Climate and Economy Sustainable Mobility Vehicles and Technologies Summit, where Minister of Industry and Technology Mehmet Fatih Kacır highlighted Turkey’s capabilities and ambition in the mobility ecosystem.

Minister Kacır emphasized the significant growth in electric vehicle sales in Turkey, noting a remarkable 103 percent increase in the first four months of the year compared to the same period last year. Hybrid vehicle sales also experienced substantial growth, increasing by 134 percent. These trends reflect a shift in consumer preferences towards more sustainable transportation options and highlight the increasing demand for electric and hybrid vehicles in the Turkish market.

The market share of electric vehicles in Turkey reached 15.5 percent during the period, while hybrid vehicles accounted for 29 percent of the total market. This demonstrates the increasing acceptance and adoption of electric and hybrid technologies among Turkish consumers, which is further fueled by government incentives and growing awareness of environmental concerns.

Kacır pointed out that the transformation in the automotive sector has attracted significant investor interest, positioning Turkey as a desirable destination for international mobility investments. The establishment of Chery’s production facility in Turkey is a testament to this growing appeal, as it signifies a strategic move to capitalize on the country’s favorable investment climate and expanding EV market.

The Chery production facility aligns with Turkey’s strategic objectives to drive mobility transformation, not only for the brand itself but also for the broader automotive industry in the country. The Ministry of Industry and Technology’s Mobility Vehicle and Technology Strategies Roadmap outlines plans to increase Turkey’s production capacity and localization rate through targeted investments.

The roadmap sets an ambitious goal of producing 1 million electric and rechargeable hybrid vehicles annually by 2030. Furthermore, the plan aims to increase the localization rate in these vehicles to 75 percent, promoting domestic manufacturing and technological development. This will reduce reliance on imported components and create new opportunities for local suppliers and manufacturers.

The new production facility in Samsun is expected to generate significant benefits for the region, including employment opportunities and industrial development. The investment will create numerous jobs for skilled workers, engineers, and technicians, contributing to economic growth and prosperity in the region. It will also stimulate the development of supporting industries and infrastructure, further enhancing the industrial landscape of Samsun.

Chery’s investment adds another crucial element to Turkey’s growing electric vehicle production chain. It complements existing initiatives and investments, such as the domestic automobile brand Togg and BYD’s decision to establish a production facility in Manisa. These investments collectively contribute to the development of a comprehensive ecosystem for electric vehicle manufacturing in Turkey.

It is important to note that Chery’s investment aligns directly with Turkey’s domestic battery production targets, expansion of fast-charging infrastructure, and plans for smart mobility systems. Turkey recognizes the importance of developing a robust battery industry to support the growth of electric vehicle production. Efforts are underway to attract investments in battery module and subcomponent manufacturing, with the aim of establishing Turkey as a regional battery production center.

The expansion of fast-charging infrastructure is also a key priority, as it will address range anxiety and encourage the adoption of electric vehicles. The government is working to deploy a network of charging stations across the country, ensuring that electric vehicle owners have convenient access to charging facilities.

In addition to electric vehicle production and charging infrastructure, Turkey is also focused on developing smart mobility systems. This includes the integration of advanced technologies such as autonomous driving, connectivity, and data analytics to enhance the efficiency, safety, and sustainability of transportation. The goal is to produce Level 3 domestic autonomous vehicles in Turkey by 2030, positioning the country as a leader in smart mobility solutions.

Turkey is actively increasing its presence in the global mobility arena by attracting investments from leading automotive manufacturers. BYD, the world’s largest electric vehicle manufacturer, is establishing a production facility in Manisa with an annual capacity of 150,000 electric or rechargeable hybrid vehicles, along with an R&D center for mobility technologies. This investment further strengthens Turkey’s position as a hub for automotive innovation and production.

Minister Kacır emphasized that these investments reinforce investor confidence in Turkey’s high-tech production capacity. The country is taking decisive steps towards becoming a major player in the production of new-generation electric vehicles. By implementing comprehensive strategies, Turkey aims to increase the market share of electric and rechargeable hybrid vehicles to over 35 percent, achieve a localization rate of 75 percent in these vehicles, and increase its production capacity to 1 million units by 2030.

Turkey’s commitment to developing a comprehensive electric vehicle ecosystem, coupled with its strategic location and favorable investment climate, makes it an attractive destination for automotive manufacturers seeking to expand their global footprint. The Chery production facility in Samsun is a significant step towards realizing Turkey’s ambitious goals in the mobility sector, paving the way for a more sustainable and innovative future for the automotive industry.