Türkiye expects global electric car producer to invest this year

At least one global electric car producer is expected to announce an investment in Türkiye by the end of this year, according to a senior official, stressing high interest that comes as the first indigenous battery-powered vehicle expands deliveries.

“There is significant interest by global brands for the production of electric cars in Türkiye,” Industry and Technology Minister Mehmet Fatih Kacır told reporters on Thursday.

“Türkiye’s membership in the European Union’s customs union is still a big advantage for many global brands.”

Kacır said there has been interest from companies, from Europe to the Far East. More than one producer from China is interested in investing in Türkiye, he added.

“We are meeting with more than one, I hope we will reach a conclusion with all of those we have met.” Kacır said he expects at least one of them to announce a new investment by the end of the year.

The minister stated that almost all companies operating in the automotive sector in Türkiye also have new investment requests. “We are working on new investments with almost all of them,” he noted.

Sales of electric vehicles in Türkiye jumped over 465% in the year through June, according to the Automotive Distributors and Mobility Association (ODMD) data.

Some 12,792 battery-power cars exchanged hands in the first half of the year, compared to 2,263 units sold last year.

The drive has been spurred by the increasing momentum in the deliveries of the country’s first indigenous car Togg and the arrival of new brands.

“This year, of course, this rise will be more radical with Togg,” said Kacır.

The brand delivered some 808 units of its T10X as of the end of June.

Mass production of the fully electric C-segment SUV was launched last October, and deliveries started in late April. The carmaker will have delivered 20,000 units by the end of 2023, the minister noted.

“We anticipate that there will probably be 20,000 total sales of other brands as well. Therefore, electric vehicle sales will approach 40,000 this year, while last year the figure was below 10,000,” Kacır added.

Battery-powered vehicles have seen their market shares reach 3%, up from just 0.8% in the first six months of last year.

Togg said the two-month sales figure granted it a 28.9% market share, making it a leader in the electric SUV segment. It also topped the first-half list with a 15% market share, the company said in a statement.

The T10X is initially being sold with one engine type and two battery options. It will feature battery packs with 52.4 and 88.5 kilowatt-hours capacities, boasting ranges of 314 and 523 kilometers (195 and 325 miles).

A consortium of five Turkish companies called the Automobile Initiative Group of Türkiye, or Togg, is manufacturing the vehicle in cooperation with the Union of Chambers and Commodity Exchanges of Türkiye (TOBB).

Besides the SUV, Togg will manufacture four other models – a sedan, C-hatchback, B-SUV and B-MPV – by 2030. The sedan will follow the mass production of the SUV.

The current production capacity of around 100,000 vehicles per year will reach 175,000 once Togg’s factory reaches total capacity.

The brand aims to manufacture 1 million vehicles across the five segments by 2030. Togg plans to begin exports as of 2025, while the initial production will be tailored for the domestic market.

“Togg will reach an annual production of 175,000, some of which will be exports, within four to five years,” said Kacır.

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