China’s Dongfeng Motor (0489.HK) is in talks to produce passenger cars in Turkey, according to its local distributor, signaling a potential expansion of Chinese automakers into the EU-adjacent market.
Local Production Could Lower Costs
Turkey, a market of 1.4 million annual vehicle sales, imposes heavy taxes on imported cars, prompting Chinese car manufacturers, including Chery and BYD, to explore local production partnerships. The move could reduce prices for consumers while boosting domestic manufacturing employment.
Hybrid and EV Models in Focus
Marcar, Dongfeng’s Turkish distributor, confirmed discussions with an unnamed investor who has secured a production facility. “We are working hard to begin production this year,” said Yavuz Cirak, CEO of Marcar, in a LinkedIn statement. Dongfeng’s Voyah luxury hybrid model is slated for local production, aligning with Turkey’s rising EV demand.
Strategic Market Entry
Turkey’s customs-free trade agreement with the EU makes it an attractive hub for exports, offering Dongfeng an opportunity to serve both local and European markets. BYD is expected to start production in Turkey by late 2026, signaling a growing presence of Chinese car manufacturers in the region.
Market Analysts Watch Closely
While the final investment decision is not guaranteed, industry experts suggest that localized production could reshape Turkey’s automotive landscape, particularly in the hybrid and EV segment.
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