Türkiye’s 2nd domestic car firm Habas secures Honda factory, invests 1B euros

Habas, Türkiye’s second domestic car firm, has acquired a former Honda manufacturing facility and plans to invest approximately 1 billion euros ($1.12 billion) into the automotive sector. This substantial investment will focus on ramping up production for both passenger and commercial vehicles.

New passenger vehicle models

Habas Automotive General Manager Huseyin Urkun has announced that the former Honda plant will now be used to produce passenger vehicles. The company plans to introduce two new models: a sedan and a crossover. The company will offer these vehicles in hybrid, plug-in hybrid, and gasoline versions. The passenger cars will run on Volvo engines, while the light commercial vehicles will use Renault engines.

Details on production capacity and investment

Habas aims to boost the production capacity of the Honda facility from its current 50,000 units to between 75,000 and 100,000 units annually. Additionally, a new facility in Manisa will produce 20,000 light commercial vehicles.

The total investment, encompassing both passenger and commercial vehicle production, is projected to approach 1 billion euros. To date, the company has invested approximately 250 million-300 million euros ($278 million-333 million) in passenger vehicle production.

Battery production and packaging

The company procures its vehicle batteries from the Far East and manages packaging and other processes in its own facilities. Habas handles all aspects of battery documentation, specifications, and approvals internally. This aspect of the investment is part of the broader 1 billion euros commitment.

Sustainability and technological advancements

Habas is emphasizing sustainability and innovation with its new electric and hydrogen-powered vehicles. Designed to achieve zero carbon emissions, the Steeppower-e electric truck boasts a 282 kWh lithium iron phosphate (LFP) battery. Additionally, the Comfortcity-H2, a hydrogen fuel cell city bus, offers an eco-friendly transportation solution with a range exceeding 1,000 kilometers and zero emissions.

Dealership network and market strategy

Urkun also noted that the company has begun establishing a dealership network and plans to enter the market with competitive pricing, aiming to offer lower prices than competitors. This strategy intends to strengthen Habas’ position in both the passenger and commercial vehicle markets.

These investments mark a significant expansion for Habas within the Turkish automotive industry and highlight the company’s commitment to advancing sustainable and innovative technologies.