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Launched with fanfare and hailed as a symbol of technological independence, TOGG (Turkey’s Automobile Joint Venture Group) was envisioned as a cornerstone of Turkey’s push for innovation and industrial self-sufficiency. Yet, just a few years into production, TOGG is grappling with major internal and external challenges that cast serious doubt on its long-term viability.
Strategic Misalignment: Luxury SUVs in a Price-Sensitive Market
TOGG’s decision to enter the market with high-priced electric SUVs has been widely criticized as a strategic miscalculation. Turkey’s economic landscape, marked by high inflation and reduced purchasing power, makes affordability a primary concern for the average consumer. Despite this, TOGG targeted the premium segment with its T10X SUV—an approach that sharply limits its customer base.
While countries like China and the U.S. are offering competitive EVs across a wide price spectrum, TOGG’s narrow focus on luxury electric vehicles has left it ill-equipped to compete, especially as more cost-effective alternatives continue to flood the Turkish market. Analysts argue that without a pivot toward more affordable models, TOGG risks further marginalization.
Intensifying Global Pressure: The Rise of BYD and Tesla
TOGG’s struggles are exacerbated by the increasing dominance of global EV giants in Turkey. Chinese powerhouse BYD has announced a $1 billion investment to establish a factory in Manisa, accompanied by aggressive plans to expand its market share. Its recent shipment of 7,000 vehicles to Turkey and logistical infrastructure suggest a long-term commitment that will further intensify competition.
Tesla, meanwhile, has solidified its position as a market leader. In Q1 2025 alone, Tesla sold 3,310 vehicles in Turkey—outpacing TOGG, which only managed 2,038 units in February. With expanding service centers, brand loyalty, and price advantages thanks to global scale, Tesla is steadily capturing a growing segment of Turkish EV buyers.
Internal Disruption: Layoffs, Lawsuits, and Leadership Instability
TOGG’s internal dynamics present further concerns. In recent months, numerous white-collar employees have been laid off, citing unpaid wages, lack of transparency, and a deteriorating workplace culture. Many of these former staff members have taken legal action, claiming unfair termination and inadequate severance packages.
These HR issues point to deeper structural weaknesses, suggesting that TOGG has not yet developed the robust corporate governance needed for long-term success. Reports of disorganized workflows and inconsistent managerial practices further highlight the lack of institutional maturity within the organization.
Additionally, rumors surrounding the potential resignation of CEO Gürcan Karakaş have created a cloud of uncertainty. While no official announcement has been made, speculation is rife that Karakaş may step down amid mounting pressure and internal discord. Such a departure could significantly destabilize the company’s already fragile leadership structure.
Staggering Financial Losses: 13.75 Billion TL in 2024
Perhaps the most alarming indicator of TOGG’s struggles lies in its financial performance. In 2024, the company reported a loss of 13.75 billion TL, raising red flags among investors and stakeholders. One of TOGG’s key shareholders, Turkcell, acknowledged a direct financial hit of 3.16 billion TL due to its 23% stake in the company.
The company’s net asset value also plummeted, from 36.8 billion TL at the end of 2023 to just 23 billion TL by the end of 2024—a 37.5% decline. If not addressed with a serious turnaround strategy, these losses could threaten TOGG’s ability to continue operations.
Perceptions in the Industry: “TOGG is Gasping for Air”
Competitors and observers in the automotive sector are increasingly vocal in their skepticism. Several industry analysts have commented that TOGG is “gasping for air”, struggling to find its footing in a saturated and rapidly evolving market. The combination of strategic missteps, operational instability, and financial strain is diminishing the company’s credibility—both in Turkey and abroad.
As global players like Tesla and BYD tighten their grip, TOGG is at a crossroads. Without swift corrective action—such as leadership renewal, product diversification, and better cost alignment—the brand may find itself relegated to a cautionary tale rather than a success story of national innovation.
