Tofaş Begins Production on $300 Million K9 Project

TOFAŞ has begun production under its K9 Project at its Bursa factory, following a $300 million investment developed in cooperation with Koç Group and Stellantis. The project is expected to add annual capacity for 100,000 vehicles and create around 1,000 jobs. It will also involve approximately 100 domestic suppliers, expanding the project’s impact beyond the factory itself.

What is the TOFAŞ K9 Project?

The K9 Project is a new vehicle production initiative at TOFAŞ’s Bursa plant. It will manufacture light commercial vehicles for Stellantis brands, along with Combi versions designed for passenger transport. The project uses a production line built for a multi-energy platform, giving TOFAŞ flexibility to produce vehicles with different powertrains as market needs evolve.

The investment totals $300 million and is expected to increase TOFAŞ’s annual production capacity by 100,000 vehicles. The company currently has an annual capacity of about 500,000 vehicles and a workforce of roughly 5,000 people.

How the investment will affect jobs and suppliers

TOFAŞ expects the K9 Project to create approximately 1,000 new jobs. Around 100 domestic supplier companies are also expected to contribute to production, creating opportunities throughout the automotive supply chain. This means the investment’s effects could extend to component manufacturing and other supplier services as well as direct factory employment.

Why the Bursa production line matters

The multi-energy production line gives TOFAŞ greater flexibility to respond to changing vehicle technology and demand. The infrastructure could also support future production of electric light commercial vehicles in Bursa. While this is a potential future use of the line, the project’s immediate focus is manufacturing Stellantis light commercial vehicles and passenger-carrying Combi models.

TOFAŞ has a long history in Turkish automotive production. Its Bursa factory began producing vehicles in 1971, and TOFAŞ engineers contributed to the development of the second-generation Fiat Doblo. The company has produced more than 2 million Doblo vehicles, with approximately 1.5 million exported.

Turkey’s automotive industry and export performance

Turkey’s automotive sector exported vehicles and related products worth $41.5 billion last year, according to figures cited by Industry and Technology Minister Mehmet Fatih Kacır. The country produced 1.5 million motor vehicles during the same period, with about 80% manufactured at plants operating through global automakers’ direct investments or local partnerships.

Turkey’s automotive supply-industry exports rely heavily on European markets: 64% went to European Union countries. The EU also supplied 56% of Turkey’s imported automotive parts and components. These figures highlight the close connections between Turkish production and the European automotive supply chain.

Government support for automotive investment and research

Kacır said automotive manufacturers and suppliers have received investment incentives for 3,857 projects over the past 23 years, representing a combined investment value of 1.6 trillion lira. Seven automotive projects, with a total investment value of 61.6 billion lira, have also been included in the Investment Commitment Advance Loan Program.

Through TÜBİTAK, support has reached 3,278 automotive technology projects and 3,439 researchers and young people working in the field. The funding provided for these activities over the past 23 years totals 34 billion lira, according to the minister.

What the K9 Project could mean for electric vehicles

The new line’s multi-energy capability provides a foundation for adapting production as the market shifts towards electrification. Kacır said the factory infrastructure could make future electric light commercial vehicle production in Bursa possible. The project therefore combines immediate manufacturing plans with flexibility for potential changes in vehicle technology.

Turkey’s broader automotive strategy also focuses on electric and autonomous vehicles, artificial intelligence, connected services and software. Kacır said the government plans to encourage higher-value investment in these areas, while supporting green transformation, fleet renewal and emissions reduction.

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