CEO expects Togg to become profitable by 2027

ISTANBUL

Togg, Türkiye’s first homegrown electric vehicle maker, may become profitable as early as 2027, its CEO Gürcan Karakaş has said.

“We started selling cars in 2023. So, to reach profitability, I think it will take four to five years from that point,” Karakaş told Automotive News Europe in an interview.

Togg delivered 19,583 vehicles last year, according to data from the Automotive Distributors’ and Mobility Association. EV sales in Türkiye leaped 833 percent in 2023 from 2022 to 72,179 units.

“Based on an analysis of the market that we did with Boston Consulting, the conclusion was that by 2032, give or take two years, the profitability structure will shift to a 50-50 mix for digital services and car sales,” Karakaş said.

Now, the stress they face is increasing production to meet demand, but it will take time because they didn't expect to reach that level of output at their plant near Istanbul for four to five years, he added.

Karakaş said that their business plan until 2032 doesn't include launching in the U.S. or China.

“However, since we have seen good progress, we could be in a position to surpass the 175,000-production capacity at our plant earlier than expected. We think that with demand at 350,000, we would still primarily be in the European space.”

If demand goes beyond 500,000 or 600,000 then they would need to look at additional markets, Karakaş said.

The CEO also noted that Togg is not aiming to offer a 20,000-euro EV.

“If you want to have something that is state of the art when it comes to the battery, connectivity, safety, cybersecurity and the electric architecture, that already costs more than 20,000 euros,” he said.

Togg’s third car will be smaller than the first two, and it will be less expensive, but it will not be priced at 20,000 euros, Karakaş added.