According to the Turkish Ministry of Industry, which announced the investment on Wednesday, Chery will build a new factory in Samsun, Turkey to produce electric vehicles and parts. The annual production capacity of the factory is expected to be 200,000 vehicles.

The investment is of great significance to the Turkish government. Recently, the Turkish government has faced a week of protests in the country and foreign capital outflows in the process of suppressing the opposition. Turkey has been trying to use its geographical advantage connecting Asia and Europe to promote the development of its domestic manufacturing industry for many years.

According to the announcement of the Turkish Ministry of Industry, the project also includes a research and development center and is expected to create 5,000 jobs.

Chery's layout in Turkey will expand the influence of Chinese automakers in the country, which is gradually becoming a hub for its automobile exports to Europe. BYD, one of the world's largest electric car manufacturers, announced last year that it would invest $1 billion in a factory in Turkey to circumvent EU tariffs. Although Turkey is not a member of the European Union, it has a customs agreement with the EU.

According to a person familiar with the matter, the Turkish government has allocated 1.5 million square meters of land for the Chery project and the two sides have been negotiating for about a year. The person also said that the location of the Samsun factory is strategically located for exports to Europe and Central Asia.

Turkey itself is also an important market for electric vehicles, which accounted for 11% of the country's new car sales last year. Research firm BMI predicts that by 2032, electric vehicles will account for about 30% of new car sales in Türkiye.