DOK-ING’s Post

#Turkey in advanced talks with chinese automakers BYD and Chery International for EV plants. ➡ Turkey's industry minister, Fatih Kacir, has revealed in an interview with Bloomberg News that Turkey is in advanced discussions with Chinese electric car manufacturers #BYD and #CheryAutomobile to establish production plants in the country ✅ This development comes as the European Commission investigates whether fully electric cars manufactured in China are receiving distortive subsidies, which could lead to the imposition of additional tariffs. 👉 Kacir emphasized the urgency and progress of these talks: "We would like to complete the talks as soon as possible. 👉 We have come a long way with both of them." In addition to BYD and Chery, Kacir mentioned ongoing separate negotiations with other major Chinese automakers, including #SAICMotor, which owns #MGMotor, and Great Wall Motor Co., Ltd. Motor. ➡ The strategic interest of global brands in Turkey's automotive sector is evident. 👉 Kacir highlighted that "Turkey's membership in the European Union's customs union is still a big advantage for many global brands. ▪ " This membership facilitates easier access to the European market, making Turkey an attractive location for manufacturing and exporting vehicles, particularly #ElectricVehicles . ➡ In a significant move to protect its domestic market and encourage local production, Turkey imposed a 40% additional tariff on imports of electric vehicles from China in 2023. ✅ This tariff aims to balance the competitive landscape for local manufacturers and attract foreign investment in Turkey's burgeoning EV sector. 👉 As Turkey positions itself as a hub for electric vehicle production, the potential establishment of plants by BYD, Chery, SAIC Motor, and Great Wall Motor could significantly boost the local economy, create jobs, and reinforce Turkey's role in the global automotive industry. ▪ These developments align with Turkey's broader strategy to promote sustainable mobility and reduce carbon emissions by fostering the growth of the electric vehicle market. #AutomotiveIndustry #ElectricVehicles #Turkey #China #Investment #SustainableMobility #EVManufacturing #GreenTechnology #Automotriz #Automotive #Automoción #eMobility #Batteries #Baterías #EV #ElectricVehicles

The Japanese government has recently threatened to take Pakistan to the World Trade Organization (WTO) for forcing its three car assembling companies to export. This development follows Pakistan’s directive to its three major Japanese car assemblers— Suzuki, Toyota, and Honda — to increase their export activities. The government is asking to export a mere 2% of the imported value of CKD starting FY22, which may rise to 10% by FY26. The export could be of car parts or fully assembled units. Certainly, the number is not large in and of itself, yet it lacks determination. So what is the reason behind Japan’s intense pain if only 2% of its imported value of CKD is required to be exported?

The Japanese government has recently threatened to take Pakistan to the World Trade Organization (WTO) for forcing its three car assembling companies to export, as they think it violates WTO rules. On the other hand, Pakistan maintains that its actions comply with WTO rules. This development follows Pakistan’s directive to its three major Japanese car assemblers— Suzuki, Toyota, and Honda — to increase their export activities. The government is asking to export a mere 2% of the imported value of CKD starting FY22, which may rise to 10% by FY26. The export could be of car parts or fully assembled units. Certainly, the number is not large in and of itself, yet it lacks determination.

BYD to open an enormous electric car plant in Turkey This is highly significant for two reasons: 1) Turkey although not in the EU, it is in the EU customs union, so this deal sidesteps the new tarriffs on imported electric vehicles. 2) It highlights massively one of the fundamental disadvantages of the UK no longer being in the EU customs union, as such a plant would never be built here. (Something I am sure our new government will be well aware of) Turkey is a fantastic place to do business of course with economies of scale and wage costs that cannot be matched elsewhere in the EU, so congratulations to them. Shrewd move to put 40% on imported Chinese made vehicles to ensure the market is only served by local manufacturers too. #manufacturing #customsunion #eutrade https://lnkd.in/e7YkDgdf

Let's take a closer look at Hungary today on the occasion of the Hungarian EU Council Presidency in the second half of 2024. Zoltán Peternics, Managing Director of a. hartrodt hungary in Budapest, describes the economic conditions in the landlocked country as difficult. The market expert expects growth impetus for the logistics sector from a new electric car factory being built by Chinese manufacturer BYD in Szeged. Also read in our news how European overland transportation, the Iron Silk Road as well as sea and air freight services are developing. #hartrodt #hungary #landtransport #overlandtransportation #logisticscompany #transport #transporte

#Kyrgyzstan 🇰🇬 begins construction of new car factory 🏭 Kyrgyzstan’s President Sadyr Japarov broke ground for a new car plant in late February. It could mark the start of Chinese cars being produced en masse in Kyrgyzstan - as the government promises up to 80,000 units per year. According to Japarov’s office, Kyrgyz enterprises and China's Hubei Zhuoyue Group are working together on the USD 115m project. Operations are slated to start in August. A second, smaller plant is due to open in Kyrgyzstan as a well this year producing 10,000 units. Japarov has shown a willingness to develop landmark joint projects with both China and Russia. Kyrgyzstan is one of the least developed countries in the region. This new car plant shows both domestic and Chinese confidence in the country’s ability to assemble advanced manufactured goods. It also signals a Chinese pivot away from solely investing in resource extraction and infrastructure in the country. Chinese investments in Kazakhstan have also diversified recently from resource extraction and infrastructure to manufacturing but that is a much larger and more complex economy than Kyrgyzstan. The new cars will be electric cars - and will only be assembled in Kyrgyzstan, with components produced elsewhere. Kyrgyzstan is also a major re-export destination for cars, with its car imports far in excess of domestic demand. Many imported cars get re-exported to Russia from China and South Korea, often to help evade sanctions. Kyrgyzstan’s car imports from China have risen by a factor of 44 and its car imports from South Korea by a factor of 10. 60,000 cars were exported to Russia last year. Russia has pressured Kyrgyzstan on this, believing that these cars are undercutting the Russian domestic car industry which has been under strain since the beginning of the war. The Kyrgyz government has warned importers of a 20% hike on customs duties for car exports to Russia. Producing the cars domestically would help get around this restriction.

China's automakers are looking to boost production in Europe as the European Union considers raising the current 10 percent import tariff on Chinese vehicle imports to a punitive level. Here is an overview of Chinese companies' European production plans: #automotive #europe #china https://lnkd.in/ecSdtGzi

#China is dominating global electric-vehicle production, and has become the world's number-one exporter of new cars of all types, overtaking #Japan. Analysts say the move to reduce exports in #China could help rival car-making nations close the gap to Chinese #manufacturers, with research by Forbes suggesting European car makers are five years behind the progress made by Chinese brands when it comes to #electriccars. #EnergyTransition #Innovation #urbanmobility #futuremobility #automotive #electricmobility #electricvehicles #evcharging #emobility https://lnkd.in/dZyyQzah

It’s true in AI, it’s true in manufacturing and soon it will be true in luxury too, when will EU wake up and realize it’s not the rest of the world being “unfair” and need to be regulated, but EU regulators and industry that have become soft and uncompetitive.

The issue is probably NOT only about commodity prices or export volumes; it’s about trade imbalances that have threatened the foundations of Europe’s economy. Globalization should not eliminate local jobs but create collaborative businesses that allow local economies to thrive by playing their roles within the global supply chain. For Europe and China, discussions should focus on balancing job opportunities through mutual investments that foster local industries and economies, allowing each to maximize their strengths. Regarding EVs, the focus should be on promoting local production and development. If Chinese EV companies receive government subsidies, then European automakers should receive similar subsidies when they produce and sell cars in China, and vice versa.