Turkey has become an attractive territory for electric vehicle (EV) manufacturing due to several interrelated factors.
Its strategic location, in a privileged geographical position, makes it a gateway to the European market, one of the largest consumers of zero emmission cars.
This geographical advantage also allows it to capitalise on its proximity to emerging markets, contributing to the potential growth of domestic sales.
Moreover, the government has implemented a series of measures to attract automakers.
“Turkey has introduced favorable policies and incentives to encourage investment in the EV sector, including tax reductions, subsidies, and grants for research and development,” comments Merve Ünlü, Growth and Strategy Coordinator at the Turkish company Büyütech, to Mobility Portal Europe.
“The truth is that the government has set ambitious goals for increasing the number of EVs on the road and building the necessary charging infrastructure,” she adds.
These efforts have significantly improved the business environment, making it more favourable for foreign investment.
Furthermore, the country has a highly skilled workforce, with a large number of trained engineers and technicians who can support the production of electric vehicles and related technologies.
This workforce, combined with relatively low labour costs compared to other European countries, makes Turkey a profitable location for manufacturing.
Finally, Turkey has access to critical minerals and materials needed for battery production, an essential component in EVs, significantly reducing the risks and costs associated with the supply chain.
“Turkey’s strategic location, skilled workforce, and strong automotive manufacturing base have attracted foreign investments from global giants like Mercedes-Benz and Toyota, both of which have made moves toward local EV production,” Ünlü indicates.
What electromobility projects are currently being carried out in the country? Below is the detailed report by Mobility Portal Europe.
TOGG: a local bet with global ambitions
The local brand Türkish Automobile Initiative Group (TOGG) has managed to position itself as a symbol of Turkish innovation in the automotive industry.
Its plant in Gemlik, in the Bursa province, began production in 2022, launching the C-segment SUV under the Togg brand.
This brand, representing Turkey’s first comprehensive effort to develop and manufacture a high-quality electric car, aims not only to meet domestic demand but also to compete in international markets.
Ünlü comments: “TOGG’s project is the most prominent in Turkey’s EV sector since it is the country’s first domestically produced electric car”.
“The company has attracted significant attention from both local and international investors. The project is supported by a consortium of major Turkish industrial companies, including Anadolu Group, BMC, Kök Group, Turkcell, and Zorlu Holding,” she adds.
Ünlü also mentiones that there are expectations for further investments from Europe and Asia as production scales up.
BYD: The multi-million investment that will change the game
With a one billion dollar investment, BYD is taking a decisive step to establish itself in Turkey, choosing the Kocaeli province, specifically Gebze, as the site for its first foreign-owned EV factory in the country.
Production, expected to begin by the end of 2026, will have the capacity to produce up to 150,000 electric vehicles annually.
Experts in the sector manifest: “This strategic move not only strengthens Turkey’s position as a manufacturing hub but also underscores the shift toward EVs in the region. With Turkey’s skilled workforce and location advantage, this venture could pave the way for future collaborations in the automotive and energy sectors“.
Ford Otosan: Expanded EV production
Ford’s Turkish venture, Ford Otosan, has committed to producing electric commercial vehicles at its plant in Kocaeli.
They have been increasing their EV production capacity, with significant support from Ford Motor Company.
“Recent investments in battery production and EV-related infrastructure are part of Ford’s broader strategy to electrify its European fleet,” Merve Ünlü reveals.
Renault: French innovation in the heart of Turkey
Furthermore, Renault Group, in collaboration with the Turkish conglomerate Oyak, has reinforced its commitment to Turkey with a 431 million dollar investment that will extend until 2027.
This investment is aimed at the production of four new electric models in the Bursa province, consolidating Turkey’s position as a key manufacturing hub for the brand, a move that highlights Turkey’s strategic importance for Renault, which seeks to capitalise on the growing demand for electric cars both in the country and neighbouring markets.
Other initiatives boosting Turkey’s ecosystem
In addition to these initiatives, Ford, which already has manufacturing facilities in Turkey, is increasing its financing in EV production.
Moreover, Tesla has been invited by Turkish President Recep Tayyip Erdogan to set up a factory in the country, a proposal that could materialise in the near future.
Equally important is the interest of several Chinese companies in exploring opportunities in Turkey, particularly in battery production, which would further strengthen the local electric mobility ecosystem.
Even, TOGG has announced partnerships with global firms like Farasis Energy to develop battery packs locally.
Ünlü comments that Turkey’s efforts to develop a robust battery supply chain are expected to attract significant international investment in the near future.
About Büyütech
The Turkish company develops and manufactures advanced, high-quality camera-based solutions for Advanced Driver Assistance Systems (ADAS) for its global partners, including Ford Trucks.
Where does Büyütech operate? Mainly in Turkey, serving clients such as TOGG.
However, in its roadmap, it plans to expand its business to other European countries and the United States.
