Dear Friends,

We learned from news releases on Sunday, May 26, 2019. Mr. Mustafa Varank, Minister of Industry and Technology, gave the latest information about our National Car that is planned to be produced by Turkey’s Automobile Venture Group ( TOGG).
The prototype model will be released by this year-end.. The car will consume electrical power from its battery ( BEV). 500 km range is projected. The car is scheduled to be launched in 2022. A period of 15 years İis set for brand studies. During this time, 5 different models and 3 facelifts will be developed.
But sales and distribution channels, dealers network structure and export-related issues are not clear yet. 

Dear Friends,,

As I said on every occasion, no doubt that we can build the car. The issue is how to sell?. What markets can we sell for? Will the price be competitive? How will the distribution, service network be formed? Will the second-hand value of the car be satisfactory?  A series of questions like this comes to mind.

I’ve been paying attention for a long time. Globally, 70% of 98 million vehicles in 2018 were sold by 10 major automotive groups we all know. In addition, there exist hundreds of large and small automotive brands. Almost all of them are trying to resist in fierce competition in export markets. They address mainly their domestic markets. So ,it is obvious that the brand and model that will emerge is able to sell enough in its internal market at first. 
According to ODD data, by about 50 automotive brands in our market nearly 300 different model vehicles are marketed. Our country is an open market for every brand. In other words, any brand that sees commercial gain can sell every model compatible to EU standards in our country. The models that reach the highest number of sales per year are domestic ones. In those years when the annual sales were about 1 million, the most preferred car model was able to sell just over 30,000. Even if our national car achieves that selling performance, will it be enough to return the related greenfield investment that appears to be $ 2 billion? The calculations require close to 100,000 annual sales for feasibility. Alternatively, in my article on April 8, 2019 concerning Honda Turkey, the solution I mentioned comes front. In any case, export markets will be of absolute need.

That’s the critical point my friends. If there is not enough market potential, competitive price and sales conditions, would it be sustainable to make production?

I hope and wish TOGG officials will give priority to sales and marketing details without losing any time while prototyping works are going on in practise.

I wish all a happy and glorious Ramadan feast.