Erdogan announces $30 billion to stimulate advanced technology and boost electric car production

President Recep Tayyip Erdogan announced today, Friday, that Turkey will work to enhance its annual production of electric vehicles to reach one million cars through a $5 billion package. Speaking in Istanbul, Erdogan also revealed that Ankara will unveil another stimulus package totaling $30 billion for advanced technology sectors.

He emphasized Turkey’s commitment to improving its investment environment while leveraging momentum achieved in defense industries to advance high-tech fields. Turkey has previously paved the way for electric vehicle manufacturers to invest in the country, notably securing a $1 billion investment from China’s largest electric vehicle producer, BYD, to build a factory.

Erdogan highlighted Ankara’s long-term ambition to become a key player in the electric vehicle sector, announcing a $5 billion incentives package aimed at increasing annual production capacity to at least one million units.

Additionally, the government plans another $5 billion stimulus package to establish a semiconductor chip factory. Erdogan stated ambitions to become a regional production base in battery technology with a capacity of 80 gigawatt-hours by 2030, alongside a $4.5 billion incentives package for this initiative.

Turkey also intends to offer $2.5 billion in grants to support solar cell facilities with up to 15 gigawatts capacity, and has allocated another $1.7 billion to manufacture necessary components for wind energy generation.

With these incentives, Turkey aims to attract private sector investments of at least $20 billion, with further details to be announced soon.

In related news, data from the Uludag Automotive Exporters Association showed Turkey’s car exports amounted to around $5.6 billion in the first half of 2024, marking a 3.5% increase compared to the same period last year.