China’s biggest electric car maker BYD agrees a $1bn deal to set up a manufacturing plant in Turkey.

China’s biggest electric car maker BYD has agreed a $1bn (£780m) deal to set up a manufacturing plant in Turkey, as it continues to expand outside its home country.

The new plant will be able to produce up to 150,000 vehicles a year, according to news agencies.

The facility is expected to create around 5,000 jobs and start production by the end of 2026.

The deal was signed at an event in Istanbul attended by President Recep Tayyip Erdogan and BYD’s chief executive Wang Chuanfu.

The announcement comes as Chinese EV makers face increasing pressure in the European Union and the US.

Last week, the EU took action to protect the bloc’s motor industry by raising tariffs on Chinese EVs.

The decision saw BYD hit with an extra tariff of 17.4% on the vehicles it ships from China to the EU, which was on top of a 10% import duty.