China's Dongfeng Motor is negotiating with an investor to manufacture passenger cars in Turkey, reported Reuters, citing the company's Turkish distributor.

Turkey, with annual sales of 1.4 million vehicles, is a significant market and benefits from customs free trade with the EU. Chinese imports face extra taxes, prompting firms such as Chery to explore local production with partners.

Yavuz Cirak, CEO of Dongfeng's distributor Marcar, said on LinkedIn the company is working to start production this year. He noted the investor has secured a facility, though a final decision has not yet been made.

Marcar would manage local sales and provide support for the vehicles once production begins, according to the statement.