China’s biggest electric car maker BYD has agreed a US $1 billion deal to set up a manufacturing plant in Turkey, as it continues to expand outside its home country.

According to reports by the BBC, the new plant will be able to produce up to 150,000 vehicles a year.

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.

BYD did not immediately respond to a BBC request for further details on the deal.

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 per cent on the vehicles it ships from China to the EU, which was on top of a 10 per cent import duty.