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As U.S. Tariffs Shut the Door, Chinese EV Giants Pivot to Türkiye for EU Market Access

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Türkiye is emerging as a strategic hub for Chinese electric vehicle (EV) manufacturers, as U.S. tariffs continue to block Chinese firms from North American markets. Facing high transportation costs and rising trade barriers, Chinese companies are investing in Türkiye to cut logistics expenses in half and gain favorable access to the European market.

This shift marks a new phase in Türkiye’s growing electric mobility ecosystem, driven by both infrastructure improvements and geopolitical positioning. Türkiye’s proximity to the EU, its established auto manufacturing sector, and evolving EV policy framework make it an increasingly attractive destination for Chinese automotive giants.

Türkiye as a Rising EV Production Hub

China currently controls:

  • Over 60% of global EV and battery production

  • Over 70% of battery manufacturing

  • Nearly 85% of critical minerals processing, according to the International Energy Agency (IEA)

This dominance is reshaping the global automotive supply chain, and Türkiye is quickly becoming a critical node within it.

One of the biggest moves came from BYD, which has committed to a $1 billion investment to build an EV manufacturing plant in Manisa. The facility, set to launch by late 2026, will produce 150,000 vehicles annually and employ approximately 5,000 workers. Chery is also reportedly planning a similar investment.

Chinese Brands Expanding Their Footprint in Türkiye

According to the Automotive Distributors and Mobility Association (ODMD), Türkiye has seen a sharp rise in Chinese EV brands:

  • Current brands: Skywell, MG, Chery, Leapmotor, Seres, Maxus, Hongqi, DFSK, BYD, NETA

  • Upcoming entrants: SWM, Jaecoo

In just the first four months of 2025:

  • Total Chinese vehicle sales: 38,395

  • Market share (including light commercial vehicles): 8.13%

  • Market share (passenger cars only): 10.13% with 38,019 units sold

Some brands like DFSK and Maxus also operate in the light commercial segment, expanding their influence beyond personal mobility.

U.S.–China Trade Tensions Continue

Amid escalating tariff disputes, former U.S. President Donald Trump recently acknowledged that 145% import duties on Chinese goods have led to factory closures in China.

“I love President Xi, and I don’t want bad things for China,” Trump said, while also noting a “very high chance” of reaching a trade deal.

Meanwhile, Chinese state media has reported preliminary outreach by the U.S. to reopen discussions, suggesting Beijing may be softening its stance.

China also passed a new law to strengthen legal protections for foreign investors, aiming to restore global confidence amid slowing growth. Still, analysts say the daily volatility in U.S.–China trade news is prompting Chinese investors to seek more stable markets like Türkiye.

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