Turkey's domestic electric car project will see a set investment of $3.7 billion over the course of 13 years, the Official Gazette of Turkey said in a statement on Friday, as reported by Reuters.
What It Means
The project will receive additional benefits from the government, including tax breaks, the statement said.
The government estimates the project to produce 175,000 car units annually, with a workforce of about 4,000 people.
President Tayyip Erdogan had announced the project in 2017.
Five domestic companies, including heavy vehicles maker BMC, Vestel's (OTC: VEKSF) parent company Zorlu Holdings, and mobile phone operator Turkcell (NYSE: TKC), alongside Anadolu Group and Kiraca Holding AS.
A prototype of the car was expected by the end of 2019, and the sales were to begin in 2021, according to Erdogan's speech at the time, as reported by the pro-government publication The Daily Sabah.
The Sabah, which is considered as the government's mouthpiece, referred to the project as the "fruition" of a half-century-long "dream" of Turkey to have an entirely domestically produced car.
As noted by Reuters, Turkey is a main exporter of automobiles to Europe, but the cars are manufactured by international companies like Fiat Chrysler Automobiles N.V. (NYSE: FCAU), The Hyundai Motor Company (OTC: HYMTF), Toyota Motor Corporation (NYSE: TM), and Honda Motor Company Ltd. (NYSE: HMC).