Turkey’s automotive producer Tofaş increases its profit

Turkey’s leading automotive producer Tofaş’s profits increased although the company’s production reduced by 11,9 percent in 2018 compared to the figures of 2017
Monday, 30 July 2018 22:36

Tofaş, Turkey’s one of the leading automotive producer, announced the financial results of the company for the first half of 2018. The results show that Tofaş has reached its highest turnover in 2018.

Turkey’s leading automotive company Tofaş has announced that it reached its biggest half-term turnover between January and June 2018, increasing its turnover by 10 percent in proportion to the last year.

Tofaş’ s turnover has become 9,5 billion Turkish Liras while its consolidated net profit has risen by 21 percent, reaching 693 million Turkish Liras. However, the company’s half-term production in 2018 diminished by 11,9 percent in comparison to the previous year. As the company has produced 175 thousands of automobiles in 2018, its export volume narrowed by  8,6 percent, decreasing to 145 thousand automobiles.

The company announced that the reduction in their export rates is based on “The termination of Minicargo exportation to PSA Peugeot-Citroen and the high base year impact arising from Tipo exports.”

Producing a 21 percent of Turkey’s total automotive exportation, Tofaş’s financial conditions reflect the general panorama of the sector in the country. Although the company’s production and exportation have narrowed, its turnover seems to have increased due to the growth in commodity prices and exchange rates.

Tofaş is an automaker company established by Koç Holding, one of the top capitalist groups of Turkey that increased its profits during the rule of President Recep Tayyip Erdoğan’s AKP party. Tofaş manufactures passenger cars and commercial vehicles in the city of Bursa for some foreign brands such as Fiat, Citroen, Peugeot and Opel.