Information on the target
Hyundai Motor Türkiye has announced a significant investment in the establishment of a battery assembly plant at its İzmit factory. This initiative marks a pivotal shift in the company’s operations, as it aims to enhance its production capabilities for the IONIQ 3, a compact electric vehicle set to enter mass production in August 2026. The investment, amounting to €55 million, is part of a broader €715 million package aimed at bolstering Hyundai's presence in Türkiye's automotive sector. The new facility will span approximately 30,000 square meters and will incorporate advanced automation technology, including 27 robots for efficient battery pack assembly, developed in collaboration with Hyundai Mobis.
This strategic move positions Hyundai as a leader in the battery electric vehicle market within Türkiye, following the domestic brand Togg. The project is expected to create over 300 jobs in its initial phase and aims to produce 27,000 units of the IONIQ 3 in 2026, with projections to exceed 40,000 units in 2027. This investment not only enhances Hyundai's manufacturing capabilities but also signifies Türkiye's growing role in the European automotive supply chain, particularly in the electrification of vehicles.
Industry overview in the target’s specific country
The automotive batteries industry in Türkiye is experiencing a transformative phase, driven by the increasing demand for electric vehicles (EVs) and the country’s strategic position within the European market. In 2025, Türkiye produced over 1.4 million passenger and commercial vehicles, ranking 13th globally and fifth in Europe. This robust production capacity is complemented by a high export rate, with OEMs in Türkiye achieving an average export rate of 75 percent. The automotive sector's exports reached $41.5 billion in 2025, underscoring its critical role in the national economy.
As the demand for battery electric vehicles grows, the Turkish government has actively sought to attract foreign direct investment (FDI) in the EV and battery manufacturing sectors. Financial allocations of approximately $5 billion for EV production and $4.5 billion for battery manufacturing initiatives have been announced, demonstrating the government’s commitment to fostering a competitive environment for EV localization. The domestic market is also evolving, with battery electric vehicles accounting for 16.7 percent of new car sales in 2025, closely aligning with the EU average.
However, the industry faces challenges, including the need for a cohesive long-term EV strategy and concerns regarding tax policy volatility. The European Commission's imposition of countervailing duties on Chinese-made battery electric vehicles has further complicated the landscape, making local production in Türkiye increasingly attractive for automakers like Hyundai. The integration of Türkiye into European automotive value chains, facilitated by a customs union with the EU, enhances its appeal as a manufacturing hub for battery electric vehicles.
In summary, Türkiye's automotive batteries industry is at a critical juncture, with significant opportunities for growth driven by domestic demand, government support, and strategic positioning within Europe. The …