Established in 1968, Tofaş today is Turkey’s only automotive company to produce both passenger cars and light commercial vehicles. The Company, a joint venture between Koç Holding and Fiat Chrysler Automobiles, is among Turkey’s industrial giants with an annual production capacity of 450 thousand vehicles, more than 7,500 employees, an extensive dealer network and strong R&D as well as product development competency.
Tofaş maintained its 2nd place in the domestic automotive market.
Tofaş maintained its second position in the Turkish automotive market in 2018 despite the challenging market conditions. Tofaş garnered 11.7% market share via its brands both in passenger cars and light commercial vehicles. In the domestic market, Tofaş ranked 3rd with 9.1% market share in passenger cars and 2nd with 21.1% market share in light commercial vehicles. The Fiat brand’s 2nd position was also maintained with a market share of 11.3% and a total sales of 70 thousand vehicles.
On the exports front, there was a decline in volumes to 243 thousand units due to the contraction in the Italian automotive market, one of the Company’s key export destinations. In 2018, Tofaş realized 18% of Turkey’s total automotive exports.
In 2018, Tofaş manufactured 302 thousand vehicles following the record it achieved in terms of Turkey’s highest automotive production in 2017.
Egea Sedan is Turkey’s best-selling model.
Egea Sedan, production of which started at the end of 2015, was once again Turkey’s most popular car in 2018 with a market share of 7% and sales reaching 77 thousand vehicles.
Enabling customers to connect with their vehicles, the “Fiat Roadmate Connect” application was included in the product specifications of Fiat and Fiat Professional vehicles with effect from April 2018. In November, Fiat Egea’s Mirror model, which stands out with its technological equipment and chrome design, was introduced to the market.
In 2019, Tofaş will continue to focus on profitability, where further contraction is expected in the automotive market. Successful performance achieved in 2018 with the support of the Fiat Egea family is expected to continue and the Company is forecasted to reap the reward of its recent investments in 2019.
Asserting its claim in all segments of the domestic automotive market through a wide product portfolio which meets customer expectations, Tofaş plans to maintain the diversity it displays in export markets in 2019. The Company will maintain its competitiveness at the international level by taking advantages of digital technologies, its strong cooperation with dealers and suppliers as well as its high quality, fast and flexible service concept.
The Company will continue to provide a major contribution to the economy by maintaining its position as one of the most important players in Turkish automotive sector both in terms of production and exports.
Koç Fiat Kredi
Koç Fiat Kredi offers consumer financing for the brands sold by Tofaş. In 2018, the Company’s total loan portfolio reached TL 2.4 billion with TL 1.7 billion provided for more than 34 thousand cars during the year. Accordingly, Koç Fiat Kredi financed 62% of Tofaş’s retail sales. Koç Fiat Kredi continued to fund its growing loan portfolio via bank loans and security issuances. The total sum of these resources amounted to TL 2.3 billion as of the end of 2018. The securities issued had a nominal value of TL 355 million.
In 2018, the Company’s national short-term credit rating was confirmed as (TR) A1+ and its long-term national credit rating as (TR) AA.
Koç Fiat Kredi has undertaken projects that create a lean working environment to enhance dealer and end user experience through its mobile and online applications, innovative products, services and business processes. In 2019, the Company aims to offer versatile financial solutions to its customers by increasing its brand awareness, market share, customer and dealer loyalty through opportunities offered by digital technologies and new products and services to be developed in cooperation with Tofaş.