The 20th century was a period of construction for Turkish industry. At the time of the republic’s founding in 1923, the country had a relatively small-scale industrial infrastructure with just over 280 production facilities. However, by the 21st century, it had achieved significant milestones. Between 1923 and 1950, the number of industrial facilities increased to approximately 430 and by the early 1960s, it had exceeded 1,000.
Although Türkiye relied on development plans to strengthen its industrial base and enhance export capacity during the 1970s, it struggled to achieve substantial success in domestic production techniques. This period was interrupted by the military coup in 1980. After Turgut Özal came to power in 1983, the state-centered industrialization model was replaced with a private sector-oriented approach. Türkiye’s export capacity, which stood at $6 billion, rapidly grew to $15 billion by 1993.
By the early 21st century, Turkish industry had become a globally scaled production power. However, the financial crises of 1994, 1999, 2000 and 2001 caused significant damage to Türkiye’s industrial production capacity. Reflecting the country's political instability, its gross domestic product (GDP) remained relatively stable at around $248 billion in both 1993 and 2002. Nevertheless, the number of industrial facilities that could be classified as production plants reached nearly 13,000.
By 2025, this figure exceeded 85,000, making Türkiye the 12th largest industrial actor in the world. This growth was driven by various factors such as R&D, Foreign Direct Investment (FDI), and government incentives. Combined with political stability, this momentum has enabled $250 billion in industrial exports and positioned Türkiye as the 12th-largest automotive producer globally. With an annual production capacity of 1.2 to 1.5 million vehicles, Türkiye's automotive industry, the country’s largest export sector, has now reached a new threshold. The new threshold reached can be considered part of the process known as the Fourth Industrial Revolution. This process, which involves the increased use of next-generation technologies and reflects a shift toward clean energy models, also aims to transform Turkish industry. As part of efforts to raise R&D expenditures to $50 billion, the electric vehicle (EV) industry has been highlighted under the name Türkiye’s Automobile Initiative Group (Togg). Launched in 2019, with the first mass production phase completed in 2023, this initiative also symbolizes the 100th anniversary of the Republic.
The year 2023, when Türkiye’s GDP exceeded $1 trillion, represents a golden era for Turkish industry from this perspective. During the 2023-2025 period, Togg produced nearly 50,000 vehicles, becoming the domestic leader in the EV market with various new models under development. The company is now preparing to enter global markets.
Following its domestic success, Togg has become Türkiye’s 37th largest industrial company, generating over $1 billion in annual revenue. While it may still be considered a medium-sized company compared to its global competitors, Türkiye’s competitiveness as the world’s 12th largest automotive producer should not be underestimated. Türkiye has already surpassed European countries such as France, Italy and the United Kingdom in terms of vehicle production and industrial capacity and it now follows a medium-term strategy. This strategy focuses on achieving self-sufficiency in meeting domestic demand for EVs. Considering that Türkiye’s foreign trade volume approaches $700 billion, with energy imports accounting for between $70 billion and $100 billion, the strategic importance of Togg becomes clearer. As a country that imports $30 billion to $40 billion worth of oil annually, Togg is rapidly adapting to new production and technology models while aiming to manufacture with its own resources.
The planned procurement of 12,000 Togg vehicles for the public sector by 2029 can be seen as a significant step toward transformation. The inclusion of new models, such as the T10F electric sedan, may help reduce medium-term public expenditures. In particular, the shift away from gasoline-powered vehicles and the transition to locally produced EVs represent a critical change for the public sector, which currently operates a fleet of 120,000 vehicles. The use of Togg vehicles as official cars may also contribute to fostering a healthier relationship between the state and society.
It is estimated that around 40 million EVs have been produced globally to date. The majority of these vehicles are either produced or used in China, the United States and Western European countries. In Northern European countries, government incentives have led individuals to predominantly purchase or prefer EVs. Similarly, in countries such as Canada, Australia and Switzerland, electric vehicles are being adopted at higher rates compared to previous years.
Despite being supported by government incentives in developed countries, the EV market has yet to fully evolve into a genuinely global industry. On average, approximately 90 million vehicles are produced worldwide each year, and the vast majority of these are still non-electric vehicles (non-EVs), which remain more widely preferred. From another perspective, the Togg initiative emerged at a time when the EV sector was still relatively new and has achieved notable success in the domestic market. In addition to export efforts targeting neighboring countries, sales to more advanced markets are also on the agenda. However, China and the U.S. currently dominate and control both EV production and markets. In such a highly competitive environment, where two global industrial giants lead the sector, focusing on regional exports rather than setting overly ambitious global expectations appears to be a more realistic and strategic approach.
In 2000, the Turkish automotive industry accounted for 0.73% of global automotive production. By 2024, this share had increased to 1.5%. With the steps being taken and incentives being provided, Türkiye’s share is expected to rise to 1.85% by 2030 and eventually reach 2%. Currently, EVs represent around 3.2% of the total vehicles produced worldwide. Considering the current competitiveness of the Turkish automotive industry, Türkiye has strong potential to become a significant player in the EV sector. However, it should be noted that Togg, as a new initiative in an emerging industry, will likely need a medium-term period before it can become a major global player. Ultimately, the significance and importance of Togg lie in elevating the Turkish industry to a higher level at the threshold of the Fourth Industrial Revolution. Achieving this goal may require waiting until the 2030s, along with complementing its domestic success with a strong export performance.
