With US tariffs still unresolved and the European Union imposing steep duties on Chinese electric vehicles (EVs), Chinese automakers are accelerating efforts to establish overseas production bases. Among the emerging options, Turkey has become a key springboard for their global expansion, thanks to its geographic advantages and tariff exemptions.
According to industry sources, despite market volatility and divergent development trajectories in North America, Europe, and China, Chinese automakers, especially those focused on large-scale exports, are pressing ahead with their international expansion strategies.
Strategic advantages of Turkey
Industry players noted that the North American market remains highly volatile due to ongoing tariff impacts, while the Chinese domestic market continues to face intense internal competition. In contrast, Europe, though burdened with high tariffs on Chinese EVs, presents a more navigable path via Turkey. The country not only exempts Chinese vehicles from tariffs but also waives additional charges for automakers operating under its investment incentive programs, prompting Chinese carmakers to deploy production lines at an accelerated pace.
Geographically, Turkey serves as an ideal bridge between Europe and Asia, offering strategic advantages for supply chain management. It allows for better cost control and supports flexible logistics through both land and sea routes. Crucially, its pro-investment policies have helped Chinese automakers stay competitive in the European market.
Sources indicated that Chinese automakers are in discussions with their supply chain partners about setting up operations in Turkey to provide localized support. Beyond Turkey, Hungary and North Africa are also being considered strategic destinations, given their proximity to Southern Europe and established automotive infrastructure.
Conflict zones drive parts demand
Meanwhile, in regions like Russia, Belarus, and Ukraine—despite ongoing conflict and geopolitical instability—consumers are keeping vehicles longer, driving strong demand for parts and maintenance services. This has opened up new opportunities for Chinese auto parts suppliers.
Industry insiders believe Chinese firms had already begun preparing for US tariff risks well in advance. However, the lack of regulatory clarity and shifting policy details in the US have somewhat delayed the implementation of global expansion strategies. Nevertheless, progress in Europe and Southeast Asia remains largely unaffected.
Chinese automakers expand globally
Among Chinese carmakers, BYD stands out as a leader, with new production facilities underway in both Turkey and Hungary. NIO is expanding into the Middle East and North Africa, while BAIC Motor is planning to build an EV plant in Egypt.
Additionally, Saudi Arabia's Jameel Motors recently signed a partnership agreement with China's Changan Automobile, becoming the exclusive distributor of Changan's SUVs, sedans, pickup trucks, and new energy vehicles in South Africa.
Article edited by Jerry Chen
