Türkiye is nearing completion in negotiations with Chinese automaker Chery for a manufacturing facility within the country, according to a senior official.
That would mark a second investment in Türkiye by a Chinese carmaker after BYD earlier this year announced it would build a plant in western Manisa province.
"We are close to finalizing the deal," Industry and Technology Minister Mehmet Fatih Kacır told an interview with business daily Ekonomi on Sunday.
Chery has swiftly risen to become one of Türkiye’s top-selling car brands since reentering the market last year. Reports have suggested it plans to establish a manufacturing base in the Black Sea province of Samsun.
In July, Ankara said BYD agreed to build a $1 billion production plant with an annual capacity of 150,000 vehicles.
BYD's electric and rechargeable hybrid car production facility, which is planned to start production at the end of 2026, is envisaged to employ up to 5,000 people directly.
Alongside Chery, Türkiye has also been in talks with state-owned SAIC Motor, which owns MG Motor.
BYD has already completed the environmental impact assessment process and is moving quickly to begin construction, said Kacır.
He drew comparisons to similar projects in China and other countries, which he says typically reach production readiness within 12 to 15 months.
Kacır, meanwhile, emphasized the significance of securing such investments but also safeguarding the interests of domestic automakers.
"We are proceeding cautiously, taking into account market conditions and the interests of existing producers," Kacır said.
Türkiye's robust automotive industry currently produces nearly 1.4 million vehicles annually. It exports nearly 1 million units, and shipments are estimated to exceed $36 billion this year, according to Kacır.
"It is crucial not to lose this capability," the minister said, indicating that the global shift toward electric vehicles poses challenges and opportunities.
"We all recognize Europe's transition toward electric and rechargeable hybrid vehicles. Carbon neutrality goals and green deal targets will bring significant transformations in our main export market in the coming period," he noted.
"Ten years from now, Türkiye should not still have an industry predominantly producing internal combustion engine vehicles," Kacır stated.
"We must transition to next-generation EVs and low-emission vehicles to maintain our competitive edge in exports."
Kacır emphasized that new investments would not only boost Türkiye's export capacity but also help prevent an influx of imported vehicles.
"Brands like BYD, Chery and the SAIC group are already entering global markets. Becoming an important automotive hub will prevent us from facing a new wave of imports in the future and will elevate Türkiye's export capabilities," he noted.
Türkiye's own electric vehicle manufacturer, Togg, is the top EV seller in the country. It has formed a joint venture with Farasis for battery technologies.
Togg's assembly line is currently manufacturing T10X, a C-segment SUV, whose sales were launched last year.
The company sold about 24,361 vehicles in the first 11 months of this year, according to industry data. It has delivered over 40,000 units to date and is expected to begin exports soon.
Kacır reaffirmed the government's commitment to the brand amid speculation about potential partnerships or acquisitions.
"Togg is a national brand and will remain so," he said. While acknowledging the possibility of future technological collaborations, he dismissed any notion of foreign ownership, reiterating Togg's status as a symbol of Turkish innovation.
Besides the SUV, the company will manufacture four other models – a fastback, a C-hatchback, B-SUV and B-MPV – by 2030.
Unveiled earlier this year, the fastback sedan, the T10F, is scheduled to open for pre-orders in April and will have hit the road in the first half of 2024, said Kacır.
The company has already started working on the B-SUV model, which it named T8X. It could unveil it as soon as next year.
Togg's production capacity is aimed to reach 100,000 vehicles per year before increasing to 175,000 once its plant in the northwestern Bursa province reaches full capacity.
The brand aims to manufacture 1 million vehicles across the five segments by 2030.
Togg recently established a technology arm, TruTech, in Ankara, where a growing team of engineers is working on autonomous vehicle technologies.
"We will accelerate Togg's pace in the technology race while also introducing Türkiye to value-added production and R&D innovation investments," said Kacır.
