Automotive company Tofas secures a $300 million agreement with Stellantis to enhance production of commercial vehicles

In a significant move for the Turkish automotive industry, Tofas, a leading manufacturer with a diverse portfolio including FIAT, FIAT Professional, Alfa Romeo, Jeep, and Maserati, has announced a groundbreaking partnership with European automaker Stellantis.

The acquisition of Stellantis' 37.8% stake in Tofas, finalised in April 2025 for €400 million, marks a milestone in Tofas' history. This strategic alliance grants Tofas the import and distribution rights in Türkiye for Peugeot, Citroen, Opel, and DS Automobiles, expanding its product offerings and potentially impacting the distribution of these brands in the region.

The new project, set to commence in Q3 2026, will see Tofas investing up to €256 million ($301.22 million) in a production facility based in Turkey. The project aims to establish an annual production capacity of 150,000 vehicles, including completely knocked-down (CKD) units.

The production activities will centre around the "K9" model light commercial vehicle and its "Combi" version, which will be produced on a multi-energy platform catering to various Stellantis brands. The "K9" and "Combi" models will anchor Tofas' local production plans, signifying a significant expansion of its product range.

The new production targets announced by Tofas indicate ambitious growth plans for the company. By the end of 2034, the company aims to manufacture about 660,000 vehicles (excluding CKD units), with approximately 80% intended for the domestic market. This ambitious expansion will see Tofas producing over one million vehicles by 2032.

Tofas, with its workforce of over 10,000 employees, currently operates a large-scale facility with an annual production capacity of 450,000 vehicles. The new project will further bolster the company's production capabilities, solidifying its position in the Turkish automotive industry.

The consortium that was granted the import and distribution rights for Peugeot, Citroen, Opel, DS Automobiles, as well as FIAT, FIAT Professional, Alfa Romeo, Jeep, and Maserati in Turkey is Koç Holding. With the new contract, Tofas has outlined plans to produce the "K9" and "Combi" models, further strengthening its partnership with Stellantis.

The new project comes at a time when Tofas' net profit shrank 76% in 2024. However, with the anticipated increase in production and sales, the company hopes to improve its financial situation and continue its growth trajectory in the Turkish automotive market.

Automotive company Tofas secures a $300 million agreement with Stellantis to enhance production of commercial vehicles