Chinese electric vehicle manufacturer BYD has secured a partnership with Forvia, a leading global automotive parts supplier, to support its second European factory, located in Türkiye. Announced on Monday, the deal will see Forvia supply essential components for the new production facility, which is expected to start manufacturing electric and rechargeable hybrid cars in Türkiye's Manisa province by the end of 2026.
Forvia, the world’s seventh-largest car parts supplier by revenue, has been a long-time partner of BYD and is already providing parts for the automaker's first European plant in Hungary. With its latest expansion into Türkiye, BYD aims to strengthen its position in the European market, targeting an annual production capacity of 150,000 vehicles at the new facility.
The Turkish plant, a $1 billion investment, is projected to employ around 5,000 people and will be a key part of BYD’s European growth strategy. The deal with Forvia will ensure a steady supply of interior solutions, safety and lighting systems, mobility and powertrain systems, as well as other advanced automotive components.
Expansion of Chinese Auto Manufacturers in Türkiye
BYD’s decision to build in Türkiye is part of a broader trend of Chinese automakers expanding into the country. Forvia has also signed agreements with other Chinese manufacturers, including Chery and Li Auto, both of which are making moves to establish production bases in Türkiye. Chery, in particular, is close to finalizing plans for a factory investment, adding to its European manufacturing portfolio alongside Spain and Italy.
Chery International President Zhang Guibing recently met with Turkish President Recep Tayyip Erdoğan in Istanbul, highlighting the growing economic ties between China and Türkiye in the automotive sector. In addition to BYD and Chery, Türkiye is also in talks with SAIC Motor, which owns MG Motor, further emphasizing the country’s role as a hub for automotive investment.
Forvia’s Strategic Positioning with Chinese Automakers
Forvia’s shares surged by nearly 10% on Monday, buoyed by its new contracts with BYD and Xiaomi, a Chinese tech company that entered the electric vehicle market in 2021. Xiaomi, which started shipping its SU7 electric vehicles in April, marks another significant partner for Forvia as it looks to tap into the growing EV market in China and beyond.
With its expanding network of Chinese partners, Forvia is positioning itself as a critical player in the global automotive supply chain, helping Chinese automakers establish a strong presence in Europe while boosting its own growth in the EV sector.
