Turkish automotive company Doğan Trend on Wednesday said there has been progress in its collaboration with China's state-owned SAIC Motor to establish a vehicle manufacturing plant in Türkiye.
Doğan Trend CEO Kagan Dağtekin said in a statement that officials from the Turkish company will travel to Shanghai on Jan. 10 upon the Chinese company's invitation to "take the project to the next phase."
Doğan Trend has been working "with determination" with SAIC Motor for the plant for one year, Dağtekin added.
Doğan Trend, which represents automotive brands such as MG, Suzuki and Maxus, achieved sales of 23,300 units across its portfolio in 2024. MG is owned by SAIC Motor.
Dağtekin also addressed the factory investment conducted with MG's partner in Egypt, which he said has been worked on for approximately two years and has an annual production capacity of 50,000 vehicles.
The Egyptian factory aims to supply local markets as well as select countries in Africa and the Middle East. However, Dağtekin emphasized that this project is not an alternative to the planned investment in Türkiye.
"The Egypt factory is not an alternative or a competitor to the Türkiye project. Therefore, this project has no relation to our investment. Our possible competitors could be European countries and Morocco," he noted.
Türkiye has already secured a $1 billion investment by Chinese electric vehicle manufacturer BYD, which will build a production plant with an annual capacity of 150,000 vehicles.
Announced in July last year, BYD's electric and rechargeable hybrid car production facility is planned to start production in western Manisa province at the end of 2026. It is envisaged to employ up to 5,000 people directly.
Türkiye is also said to be in the final stages of discussions regarding a potential investment by Chery.
Ankara has intensified the push for local production and last year announced strict conditions on the import of plug-in passenger and commercial hybrid vehicles from some countries, including China.
That followed earlier restrictions in June, when Türkiye imposed additional tariffs on internal combustion engines and hybrid vehicles imported from China.
China has faced widespread criticism over its vehicle exports, which many countries claim are heavily subsidized by Beijing.
Turkish auto market
Türkiye's automotive market had a robust year in 2024 despite a tight monetary policy that made borrowings costlier.
Sales of passenger cars and light commercial vehicles hit a new record in 2024, having increased by 0.5% to nearly 1.24 million, according to industry data.
Dağtekin attributed the growth to several factors, including increased demand during the first quarter driven by tax exemptions and preelection activity. He also cited campaigns prior to the implementation of GSR2 regulations in the second quarter.
Surplus production from Europe being redirected to Türkiye during the summer intensified price competition, Dağtekin noted. He also said the entry of new players into the market, discounts and attractive financing options also boosted competition.
"Consumers took advantage of continuous campaigns throughout the year, driving purchases despite credit limitations," he noted.
Dağtekin forecasted that the market in 2025 would record between 800,000 and 1 million units in total vehicle sales.