China's Dongfeng Motor is said to be in talks with an investor about producing passenger cars in Türkiye, the company's Turkish distributor said earlier this week.

Türkiye, with annual sales of 1.4 million vehicles, is a relatively large market and has customs-free trade with the European Union. Car imports to Türkiye from China are subject to extra taxes and Chinese car manufacturers, including Chery, have been seeking to set up production with local partners.

"We are working hard to begin production this year," Yavuz Çırak, CEO of Dongfeng's local distributor Marcar and a party to the talks, said in a statement published on LinkedIn.

Dongfeng Motor did not immediately respond to a Reuters request for comment.

The investor has secured a production facility, though a final decision for investment is not guaranteed, and talks are ongoing. Marcar would oversee local sales and provide support for the cars, the statement said.

Çırak, when contacted by Reuters on Wednesday, declined to name the investor, citing a confidentiality agreement.

Turkish media reports similarly indicated that the automaker gears up for local production.

A post on the Turkish Instagram account of Dongfeng's luxury car brand Voyah on Monday stated that local production of a hybrid model was in the works.

Despite tighter financial conditions and a change in tax brackets in the middle of last year, Turkish car sales jumped to a new record, thanks to a growing adult population and rising EV demand.

Chinese manufacturer BYD, which pledged $1 billion in investment in Türkiye back in 2024, is also expected to start production in the country.

Dongfeng Motor Corporation is a state-owned automobile manufacturer headquartered in Wuhan. Founded in 1969, it is one of the "Big Four" Chinese automakers with 42 factories in different parts of China and the world, according to the company.