Domestic car TOGG harbinger of new Türkiye

There are many people in Türkiye who think that the gas in Tuna-1 never existed, and even if there really is any gas there, it cannot be used. There are those who think the Bayraktar UAVs and UCAVs are dummy drones. Despite all the scientific statements, there are those who still believe that the net errors and omissions is an illegitimacy story. Not only do they mistakenly argue that the state will fail to fulfill its FX-Protected Deposit guarantee, they also claim that the housing project will not be delivered. They think Türkiye is going to be like Afghanistan. 

They are living in a surreal world, or they are being pushed by the publications and accounts they are following to live that way. They need to be pulled out of the nonsense they have been dragged into. 

They get shocked if anyone says, “There really are Bayraktars in Ukraine, and they are fighting effectively.” 

There were other things they didn’t believe in either, like the fact that the Avrasya (Eurasia) Tunnel opened, and the Marmaray was working. They went to test it out. Riding the Marmaray is a very touristic activity. While tourists travel on the Marmaray from one side to the other just to see it, and applaud Türkiye’s success, I don’t know what those on the surreal plane felt after testing the Marmaray and understanding it is real. 

They never believed the Türkiye's Automobile Joint Venture Group Inc. (Togg) was possible. They said there is no factory in sight. When it opens, they will continue not to believe it for some time more. Then they are going to say it is not necessary. I would like to present some data on whether it really is necessary. 

According to multinational research company Bernstein’s reports, which were the subject of the World Economic Forum, the number of vehicles worldwide will rise in 2040 from the current around 1.4 billion to 2 billion. The number of trucks, which is around 400 million now, will reach 800 million. 

In other words, the number of vehicles will almost double in the next two decades. The same maybe expected in Türkiye as well. Frankly, I believe Türkiye will surpass the global report’s projection and have more than double the number of vehicles today. 

The same research group additionally estimates that the number of electric vehicles will reach 600 million as of 2040. Note that the current number of electric automobiles is calculated to be less than 20 million. It is projected that battery prices will reduce within the trend. 

Considering these data and the expectations from the Togg investment, it seems likely that a significant share in the Turkish market will transfer to Togg. This anticipation takes into regard the role tax policy will play in this. 

However, the urbanization in Türkiye seems to be an obstacle in this respect, because the existing structuring requires the use of stations for service. It is clear that this will create both planning and expense limitations for the user. In the current state, the infrastructure costs of building a charging station are high. One station is able to fully charge 30 vehicles per day, while one gas station is able to serve 30 vehicles per hour. Under these conditions, the kw price at stations is about 9 TL. Those who have the opportunity to charge at home are currently looking at a cost of about 2 TL/kw. Furthermore, though the objective is to increase the current number of stations from 2,000 to 20,000 in a short period of time, the user needs to make plans in terms of their location and how long they will use the station. 

Hence, the urban transformation will be a determining factor. Urbanization and the use of automobiles has now become more associated with electric automobiles. The structuring in metropolitan cities and apartment plan appear to be challenges for owning an electric vehicle for now. Togg will likely reduce the urban transformation demand to the base as well. 

Furthermore, the housing project, of which the groundbreaking will take place today, will set an example and be a milestone in this sense. These smart city projects may offer charging stations to residents with renewable energy. Togg and the housing projects, this week’s main agenda topics, need to be considered independent of each other. 

Considering that housing investments and urban transformation will develop effectively, battery capacities will improve both in terms of charging period and distance range, and Togg’s future projection becomes meaningful. It is a bonus that the environment will not be polluted with the increasing number of vehicles in Türkiye. 

If it wasn’t for Togg, the number of vehicles would increase and considering the current fuel preferences, the environment would have been further polluted. Togg is an investment that will necessitate automobile buyers in Türkiye to make a more flexible evaluation of fuel preferences. 

This investment features positive externalities as well. A strong ecosystem featuring advanced technology will emerge around Togg. As the automotive industry in particular switches to the autonomous system, it will make great achievements in software. Finally, the job fields needed can be opened. A synergy will be formed in import substitution not only in automobiles, but also in numerous other items, of which maybe only a portion can be foreseen. A magnificent lever will emerge. 

There is also the behavioral aspect of the matter. Togg is the harbinger of the new Türkiye. It is a symbol of Türkiye’s developing vision, capacity, and ability – and that it will further develop. It is not an investment aimed at completing a deficit, the future is being built. Thank goodness for Togg.