Turkey's wealth fund to boost Togg stake, cementing state control at $900 million valuation

What is changing in Togg's ownership

Turkey's sovereign wealth fund agreed to acquire stakes in Togg from two early backers, putting President Recep Tayyip Erdogan's flagship EV project at a $900 million valuation. TWF already owns 26.2% of Turkcell. After completion of the transactions, TWF will hold a direct 35% stake in Togg and Turkcell will own 34%, leaving the state with a combined 69% share in a company that was initially brought together by some of Turkey's largest private groups. As TWF put it, "The aim is to build on the achievements to date, further develop Togg's technological capabilities and competitiveness and strengthen the brand's continued growth in domestic and global markets."

Privately held BMC Otomotiv, which manufactures both commercial and military vehicles, holds 23% of Togg. The remaining 8% is held by the Union of Chambers and Commodity Exchanges, known as TOBB.

How the project took shape - and the state's imprint

The effort followed Erdogan's call for a homegrown car brand and his appeal for a "babayigit" - literally, a brave person - to take it on. It took years for a consortium to form, and Kok Group exited in 2021. The state was involved from the outset, providing tax and investment incentives, land for a factory in Gemlik, and commitments to purchase vehicles.

For Vestel, one of the sellers, the sale arrives amid efforts by the electronics company to reorganize its liabilities, including a $500 million Eurobond maturing in 2029. Vestel shares jumped 10% in Istanbul trading on Tuesday, the biggest gain since Sept. 4.

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Sales, products, and where growth stands

Togg has become the top seller of electric cars in Turkey, helped by exclusive financing promotions like zero interest loans at a time when broader policies to cool demand have made car loans harder to get. The company's lineup consists of an SUV and a sedan at present. It began selling in Germany in 2025, but sales outside Turkey remain insignificant.

According to industry group ODMD, Togg moved 44,187 vehicles domestically over the year's first ten months, a 61% increase from the prior year, even as overall auto sales fell 15.3%.

Why it matters for investors

A larger state footprint via TWF at 35% and Turkcell at 34% points to tighter policy alignment and ongoing domestic support as Togg scales. The $900 million valuation offers a reference point for Turkey's EV push, while sales momentum shows demand can be nudged even in a tight credit market. The swing factor for valuation upside remains exports, since overseas sales are still negligible.

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