Turkish auto giant Tofas’ net profit shrinks 76% in 2024
The entrance of the TOFAS plant in Bursa, Türkiye, (Adobe Stock Photo)
One of Türkiye’s leading automakers, Tofas, posted a 76% decline in net profit for 2024, totaling ₺5.2 billion ($144.04 million), according to a statement filed with the Public Disclosure Platform (KAP).
The company’s net profit margin dropped to 4.3% from 11.8% in 2023. Tofas attributed the sharp decline to intensified domestic competition, low capacity utilization rates, and the negative impact of inflation accounting.
Sales plummet on weaker demand
Tofas’ sales revenue fell by 37.7% year-over-year, totaling ₺120.2 billion in 2024. The drop in sales volume significantly contributed to the decline, with the company’s gross profit margin decreasing from 18.1% in 2023 to 11.1% in 2024.
The company’s total sales volume fell 33% year-over-year to 174,000 units in 2024. In the fourth quarter alone, sales plunged 44% to 40,000 units. Tofas cited weaker export demand, disruptions due to new product transitions, and unfavorable market conditions as primary drivers of the volume decline.
Tofas’ export volumes slumped 45% year-over-year to 33,600 units. The drop was largely due to the discontinuation of the Fiorino model and regulatory issues in the North African export market.
Outlook for 2025
Looking ahead to 2025, Tofas projects continued challenges in the domestic market but expects a potential rebound in exports. The company anticipates a contraction in the domestic light vehicle market, with total sales declining from 1.24 million units in 2024 to between 0.9 million and 1.1 million units in 2025.
Tofas also foresees a drop in its domestic sales from 143,700 units in 2024 to between 110,000 and 130,000 units in 2025. However, the company remains cautiously optimistic about export recovery, signaling a possible improvement in overseas demand.
Founded in 1968, Tofas operates one of the largest automotive plants in Türkiye, located in Bursa, with an annual production capacity of over 450,000 vehicles. The facility exports to more than 80 countries, contributing significantly to Türkiye’s automotive exports.
In November 2023, the company reached an agreement with Stellantis to acquire its stakes for €400 million. However, the Turkish Competition Authority denied the acquisition in October, stating that the “commitments provided were deemed insufficient.” In December, the Turkish Competition Authority decided to review the case.
