In a significant shift, Chinese automobile manufacturer Great Wall has put a pause on its investment plans in Turkey, citing the nation’s frequent regulatory changes and rising labor costs as the primary reasons. Great Wall, a major player in the electric vehicle sector, represents a growing interest from Chinese companies in the Turkish market, which has seen a surge in demand for electric vehicles.
Turkey, known for its strategic efforts to attract investments, particularly from European Union countries, while also safeguarding its domestic automotive industry, now faces a setback with this latest development. The investment halt by Great Wall, which is part of China’s aggressive strategy to expand its footprint in the global automobile market, marks a concerning trend for Turkey’s ambitions to become a significant player in the automotive export sector.
Other Chinese brands, including Chery, Skywell, and MG, remain in negotiations for potential investments in Turkey. However, these companies are seeking assurances and attractive incentives from Turkey’s Presidential Investment Agency to proceed with their investment plans. This move by Great Wall underscores the challenges Turkey faces in maintaining a stable and appealing investment climate amidst its efforts to compete in the global automotive industry, particularly in the electric vehicle segment.