Anadolu, the official news agency of Turkey, reports that the new plant has the capacity to build as many as 150,000 cars annually.
By the end of 2026, the factory is anticipated to begin production and generate about 5,000 new jobs.
President Recep Tayyip Erdogan and BYD CEO Wang Chuanfu were present when the agreement was signed in Istanbul.
When the news asked BYD for more information about the deal, the company did not immediately reply.
The statement is made at a time when US and EU pressure on Chinese manufacturers of electric vehicles is growing.
Last week, the EU increased tariffs on Chinese electric vehicles (EVs) in an effort to safeguard the bloc’s automotive sector.
Due to the ruling, BYD now has to pay an additional 17.4% tariff on top of a 10% import fee on the cars it ships from China to the EU.
Since Turkey is a member of the EU Customs Union, cars manufactured there and shipped to other EU members can be exported duty-free.
Additionally, the Turkish government has imposed an additional 40% tariff on Chinese vehicle imports in an effort to bolster the nation’s automakers.
