Tofas Turk Otomobil Fabrikasi AS: Segment Analysis

Tofas Turk Otomobil Fabrikasi AS (Tofas) manufactures and sells passenger cars and commercial vehicles. It also designs, configures, and implements works for the manufacturing process of new models. The company manufactures the Fiat Egea Sedan, Hatchback and Station Wagon models, Yeni Doblo, MCV and is the Turkish representative of eight international automobile brands, which include Alfa Romeo, Ferrari, Fiat, Fiat Professional, Opel, Peugeot, Jeep and Maserati. The company also maintains a dealership network that provides new car and second-hand car sales, technological infrastructure-supported after-sales services, maintenance and repair services, and spare parts for all the brands under the company's portfolio.

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Tofas’s R&D focuses on the improvement of the development of new products and manufacturing technological know-how, and innovative engineering designs. The company's R&D activities are strategically aligned with its priorities and focus on three intersecting areas: social mobility, environmental sustainability, and increased productivity. In 2023, Tofas R&D Center worked on adapting Egea and Fiorino engines to meet E6.4 emission standards and developed vehicles for two special series. The center also began work on the industrialization and development phases of four Stellantis Group brands. Tofas R&D also functions as an engineering export center for global product projects. It includes developing and marketing new products that respond to market needs, improving existing products in line with changes in technology and consumer preferences, and driving innovation in the automotive industry. The Product-Development & Software division of the R&D Center of the company initiated its operations at the Technopark Izmir Software Center of the Izmir Institute of High Technology. The Izmir R&D center of Tofas will be engaged in addressing issues such as calibration and safety, data science and AI-based vehicle intelligence, solutions for autonomous and driverless vehicles, connectivity, automotive cybersecurity, and algorithms for the optimization and management of fleet services. The company also collaborates with universities to develop novel technologies and the company has collaborated with 50 universities on more than 200 R&D projects over the past eighteen years and an addition of 98 new digitalization projects were added and in 2023, a total of 287 projects were completed. Over the past five years, the number of projects in the field of digitalization has surpassed 1,700. These projects primarily focused on technologies such as the Internet of Things (IoT), advanced analytics, machine learning, vision technologies, and collaborative robots. The company's R&D center also conducts the Benim Project, which encourages employees to develop novel ideas and work together to develop them. Tofas applied for 237 patents, including 33 new applications in FY2023. To date, the company has been granted 111 patents. In FY2023, the company spent TRY1,111.8 million on research and development, which as a percentage of revenue, stood at 0.9% and grew 44.9% YoY.