Chinese automaker Dongfeng Motor is reportedly in discussions with an investor to establish passenger car production in Turkey. This move signals a growing trend of Chinese manufacturers seeking local production bases in the region to circumvent import taxes and leverage Turkey’s trade agreements with the European Union.
Strategic Move into the Turkish Market
Yavuz Çırak, CEO of Marcar, Dongfeng’s local distributor and a party to the ongoing talks, expressed optimism about commencing production within the current year. He confirmed that an investor has identified a potential production facility, although a final investment decision is still pending. Marcar is slated to manage local sales and provide after-sales support for Dongfeng vehicles in Turkey.
While Çırak declined to name the investor due to confidentiality agreements, the news aligns with reports from Turkish media. Dongfeng’s luxury brand, Voyah, also hinted at local production of a hybrid model through a recent post on its Turkish Instagram account.
Turkey’s Automotive Appeal
Turkey represents a significant automotive market, with annual sales reaching approximately 1.4 million vehicles. The country’s strategic location and its customs-free trade agreements with the European Union make it an attractive hub for manufacturers looking to access European markets. Chinese car imports into Turkey currently face additional taxes, incentivizing local manufacturing.
Despite recent economic challenges and tax adjustments in Turkey, the automotive sector has seen robust performance, driven by a growing adult population and increasing demand for electric vehicles (EVs). This favorable market dynamic has attracted other major Chinese players. BYD, for instance, committed to a $1 billion investment in Turkey in 2024 and is expected to commence production in the country.
About Dongfeng Motor
Dongfeng Motor Corporation, a state-owned enterprise headquartered in Wuhan, was founded in 1969. It is recognized as one of China’s “Big Four” automakers and operates 42 factories across China and internationally. The potential expansion into Turkey marks a significant step in its global manufacturing strategy.