Turkey’s First Locally Produced Car

Turkey’s First Locally Produced Car

September 2022

After years of waiting, the features and design of the car, which will be produced locally in Turkey, were introduced in 2020.  The construction of TOGG’s factory in Bursa with an investment cost of TRY 22 billion (EUR 1.2 billion) began in May 2020. According to the relevant authorities’ recent statements, 99% of the construction works have been completed and it is planned that the factory commences its operations on October 29, 2022. 4,323 people, including 300 qualified personnel, will be employed at the factory.

A total of five models will be produced and 176,000 cars will come off the production lines annually. The state provides great support to domestic automobiles. Supports such as customs duty exemption, VAT exemption, 10-year income tax withholding support and purchase guarantee will facilitate the production. In addition, qualified personnel support will be provided. Employment will be provided for a period of five years, not exceeding 20 times the gross amount of the minimum wage for each qualified personnel.

There is also an interest support for the new factory. Accordingly, 80% of the interest and profit share paid for the loans to be used until 31 December 2027 from one or more intermediary institutions will be covered by the Ministry of Industry and Technology. However, the loan amount should not exceed 13% of the fixed investment amount.

Recently, Turkey’s domestic car TOGG’s test drives have started. The Minister of Commerce carried out a test drive with the domestic car. TOGG’s CEO announced that the SUV model will come down from the band and will be on the roads in the first quarter of 2023. After being put on sale in Turkey, it will be available for sale in Europe in September 2024.

September 2022

After years of waiting, the features and design of the car, which will be produced locally in Turkey, were introduced in 2020.  The construction of TOGG’s factory in Bursa with an investment cost of TRY 22 billion (EUR 1.2 billion) began in May 2020. According to the relevant authorities’ recent statements, 99% of the construction works have been completed and it is planned that the factory commences its operations on October 29, 2022. 4,323 people, including 300 qualified personnel, will be employed at the factory.

A total of five models will be produced and 176,000 cars will come off the production lines annually. The state provides great support to domestic automobiles. Supports such as customs duty exemption, VAT exemption, 10-year income tax withholding support and purchase guarantee will facilitate the production. In addition, qualified personnel support will be provided. Employment will be provided for a period of five years, not exceeding 20 times the gross amount of the minimum wage for each qualified personnel.

There is also an interest support for the new factory. Accordingly, 80% of the interest and profit share paid for the loans to be used until 31 December 2027 from one or more intermediary institutions will be covered by the Ministry of Industry and Technology. However, the loan amount should not exceed 13% of the fixed investment amount.

Recently, Turkey’s domestic car TOGG’s test drives have started. The Minister of Commerce carried out a test drive with the domestic car. TOGG’s CEO announced that the SUV model will come down from the band and will be on the roads in the first quarter of 2023. After being put on sale in Turkey, it will be available for sale in Europe in September 2024.