ISTANBUL: Details of Turkey’s “domestic car” project have been revealed hours before the vehicle’s prototype is scheduled to be showcased, with the government announcing comprehensive incentives to support the endeavor.
Turkey’s Automobile Joint Venture Group Inc, or TOGG, which comprises five companies and a business umbrella organisation, will establish a factory in the manufacturing hub of Bursa, according to a presidential decree in the official gazette.
The 22 billion liras (US$3.7bil) investment will enable the production of five models and a total output of 175,000 vehicles a year.
The first vehicle, a C-SUV, will be introduced in 2022, according to TOGG’s website. The group has been giving visual hints about the vehicle on its Twitter page for the past few days. The car was designed by Italy’s Pininfarina SpA, Dunya newspaper reported on Dec 11.
The project is expected to contribute US$50bil to the Turkish economy in the 15 years following 2022, according to Mehmet Gurcan Karakas, the chief executive officer of the consortium.
The investment will enjoy comprehensive tax cuts, free land allocation, interest rate reductions and a government purchase guarantee of 30,000 vehicles until the end of 2035, according to the decree.
Investors are obliged to provide at least 3.5 billion liras in cash as capital by the end of 2023.
Turkey was the ninth-biggest car market in Europe as of November. A total of 316,427 cars were sold in the country in the first 11 months of 2019, down 26% from the same period a year earlier. — Bloomberg
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