Chinese electric vehicle manufacturer BYD Co Ltd has entered an agreement with the Turkish government to establish a US$1-billion production plant in Turkey. The facility will have an annual capacity of 150,000 vehicles and will include a mobility and R&D center, creating 5,000 jobs.

This strategic deal, facilitated by Turkey's Ministry of Industry and Technology, comes after the European Union raised tariffs on Chinese EVs to protect its industry. Turkey's customs union with the EU could potentially ease BYD's market entry.