Turkey warns BYD: Meet $1bn plan or lose tax break

Turkey has suspended a tax break for Chinese electric vehicle maker BYD, warning it will revoke the incentive if the company fails to meet a $1 billion investment plan. The move signals Ankara’s growing impatience with delayed commitments from the automaker. The tax break, originally granted to encourage local production, was paused after officials flagged concerns over BYD’s progress. Turkey’s government said it will demand repayment of any benefits already received if BYD does not fulfill its pledge to build a factory and create thousands of jobs. BYD has not yet publicly responded to the suspension. The company announced the investment plan last year as part of its global expansion strategy. Analysts say the dispute could slow BYD’s entry into the Turkish market, where it hopes to compete with local and European brands. Turkey’s warning reflects a broader trend of governments tightening conditions on foreign investment incentives.