Turkey's leading automotive company, Tofaş, will achieve successful business results in 2023, with its sustainability approach and understanding based on innovation; It continued its investments in R&D, digital transformation, mobility services and employee competency development.
Koç Holding and Tofaş Chairman Ömer M. Koç, in his evaluation within the scope of the annual report, said that the company continues its successful performance and said, “Tofaş is taking firm steps towards the future with its ability to manage rapidly changing dynamics, corporate competencies developed with a sustainability approach, stable investments and competitiveness. "We are preparing for the future with complementary programs such as digital transformation, innovation and carbon transformation," he said.
Tofaş CEO Cengiz Eroldu said, “2023 has gone down in our history as an important year in which we took very important steps for our future and achieved successful business results for our company. "In the coming period, we will maintain our strong stance with our experience and constantly developed competencies, and as Tofaş, we will continue to be the leading player of our country and break the rules in the transformation experienced by the automotive industry."
Tofaş published its 2023 activity report. While the company achieved successful financial and operating results last year, it continued its investments in R&D, digital transformation, mobility services and the competence development of its employees.
In the report; In 2023, when the automotive world continues to change rapidly with technological developments as well as economic conditions and intense competition, Tofaş will continue to create economic value, produce projects that support social development, create value for its stakeholders by constantly improving environmental, social and managerial performance, within the scope of its Sustainable Development Goals. It was emphasized that it will continue to increase.
Ömer M. Koç, Chairman of Koç Holding and Tofaş Board of Directors: “Tofaş carried its sector leadership to the 5th year”
Ömer M. Koç, Chairman of the Board of Directors of Koç Holding and Tofaş, emphasized in his evaluation in the annual report that they celebrated the 100th anniversary of the Republic with great happiness and pride last year. Koç, as a community almost as old as the Republic, has adopted as a corporate principle, Vehbi Koç's "If my country exists, I exist too; He noted that they will continue to be defenders and servants of contemporary Republican values in line with their words "If there is democracy, we are all in." Koç also stated that they will never forget the pain of tens of thousands of our citizens who lost their lives in the great earthquake that occurred in February and that they will continue to support the region.
Reminding that the Turkish automotive industry broke the record in the history of the Republic, Ömer M. Koç pointed out that the market reached a production level of 2023 million 9 thousand 1 units in 468, with a total increase of 393 percent compared to the previous year. Koç made the following evaluations: “Tofaş, one of the strongest players in our automotive industry, continued its successful performance in 2023. Leaving its 55th anniversary behind, Tofaş produced its 2023 millionth vehicle in 7, accounting for 240 percent of our country's automotive production with 16 thousand units and exporting 60 thousand units. Tofaş achieved a 16,2 percent share in the Turkish passenger and light commercial vehicle market. While we carried the sector leadership with the Fiat brand to the 5th year, all our brands achieved significant market growth. Tofaş is taking firm steps towards the future with its ability to manage rapidly changing dynamics, corporate competencies developed with a sustainability approach, stable investments and competitiveness. "We are preparing for the future with complementary programs such as digital transformation innovation, agile management and carbon transformation," he said.
Emphasis on strategic cooperation with Stellantis
Adding that there was a framework agreement signed between Koç Holding and Stellantis Group in March 2023 and a purchasing agreement between Tofaş and Stellantis Turkey in July, Koç said, “This very important strategic cooperation reflects the great confidence of Koç Holding and Stellantis in the future of our country.” It is a strong confirmation. "We expect this transaction, which is subject to regulatory approvals, including Competition Authority approval, to be completed in 2024," he said.
“Tofaş continued its growth in 2023”
Tofaş Board Member and CEO Cengiz Eroldu also said that, as Tofaş, they maintain their market leadership with 200 thousand 204 sales with five brands in the Turkish automobile and light commercial vehicle market, and that Tofaş has achieved successful results in all segments with the brands it represents. Eroldu said, “We are all proud that the Egea, which we developed and produced in Tofaş and whose 2023 thousandth sale was made in the Turkish market in 500, has been the most preferred car of our country for 8 years with its renewed versions, and it has once again proven that the privileges of design and technology can be reached by the masses.” . The 500e, the first milestone of the Fiat brand's electric vehicle journey, attracted attention in our country. An important step was taken within the scope of electrification in the light commercial vehicle market with the E-Doblò and E-Scudo models. In 2023, the growth in our premium brands will attract attention; There was a 50 percent increase in Jeep sales. In addition to the Jeep Renegade and Compass e-Hybrid models, we also launched the environmentally friendly SUV Avenger, which was chosen as the car of the year in Europe. We also tripled our sales in our Alfa Romeo brand, where the Plug-in Hybrid Q4 version of Tonale and the renewed versions of Giulia and Stelvio were introduced to the market. While the sales of our Maserati brand, which has an important place in the luxury segment, has increased 3-fold in the last 3 years, sales in 12 exceeded 2023 units. "In light of all these operational data, our Company's revenues increased by 600 percent and net profit increased by 3 percent compared to the previous year," he said.
“R&D, innovation and technological capabilities are our driving force”
Cengiz Eroldu noted that Tofaş has one of the advanced R&D centers within the Stellantis Group with the competence and responsibility to develop new vehicles and is one of the companies that spend the most on R&D in Turkey. Eroldu said that Tofaş aims to expand its scope of activity and R&D ecosystem and increase R&D exports in order to respond to the needs in the global automotive software field. “Our R&D Center, which completed 32 of 2023 European Union projects by the end of 21, increased the number of ongoing projects to 2023 by accepting 8 new projects in 19. Within the scope of studies on smart factories with digital optimization applications, we have carried out more than 5 projects in the field of digitalization in the last 1.700 years. We provided additional benefits to our customers by enriching Fiat Connect, Turkey's first and most comprehensive connectivity application, which we developed at Tofaş, with new functions. "We plan to bring this technology to wider audiences by making the Connect application available in our other brands in 2024," he said.
“Tofaş's target is 2030 percent carbon reduction in 50”
Eroldu also noted that Tofaş aims to achieve a 1 percent carbon reduction by 2 in the total of Scope 2030 and 50, mainly through energy efficiency projects, solar energy production and use, and continued his words as follows; “We aim to be net zero carbon in 2050. As a part of the Carbon Conversion Program, which includes concrete and applicable steps initiated by Koç Holding to combat the climate crisis, we have joined the international "Science-Based Targets Initiative", which aims to eliminate the negative effects of the climate crisis. As Tofaş, we will continue to be the leading player of our country in the transformation experienced by the automotive industry. As one of the top 3 factories of the Stellantis group, we are at the forefront in indicators such as occupational safety, quality and efficiency, and we consider creating a safe, healthy work environment that supports learning and development for all our employees as one of our main responsibilities. On the other hand, our projects in the fields of sports and education, which support the healthy and well-equipped upbringing of young generations, maintain their priority in terms of contributing to social development.” He ended his words by saying.