BYD Abandons Turkey Factory Plans After Tax Breaks, Sales Collapse
BYD, after benefitting from customs duty exemptions as a designated domestic producer and selling 45,000 vehicles in Turkey in 2025, is now walking away from its commitment to build a factory. Turkish sales have plunged 64% in early 2026, and local rival Togg has overtaken the brand.
BYD, which enjoyed customs duty exemptions as a designated “domestic producer” under its investment incentive certificate, sold 45,000 vehicles in Turkey in 2025 under those advantages. The company is now walking away without breaking ground on a promised factory.
Turkish ministers had been warning of “mechanisms” and potential sanctions if commitments were not met. The situation has further deteriorated as BYD’s Turkish sales collapsed 64% in the first five months of 2026, with domestic brand Togg overtaking BYD in the market.
Source: First Squawk