04 February 2022

Otokar recorded 55% growth in 2021

Otokar recorded 55% growth in 2021
Otokar, a Koç Group company, announced its 2021 financial results, confirming its steady growth. Otokar General Manager Serdar Görgüç noted that the company continued its operations at full steam in harmony, cooperation and mutual trust with all its stakeholders. “Otokar recorded TL 4.5 billion in revenues with 55% year-on-year growth, posting a net operating profit of TL 1 billion 76 million with a 69% increase. Furthermore, our exports in 2021 amounted to US$345 million as our net profit rose to TL 1 billion 42 million”.
Otokar, the leading Turkish automotive and defense industry company, announced its 2021 financial results. Fast on track toward its global targets with bold steps and operation in more than 60 countries on five continents, Otokar completed 2021 with 55% year-on-year revenue growth.
Otokar General Manager Serdar Görgüç said that the company’s operations in the domestic and international markets continued seamlessly despite the prolonged effects of the coronavirus pandemic. “In 2021, our revenues rose by 55% year-on-year, reaching TL 4.5 billion. As we maintained our competitive position globally, our exports amounted to US$345 million. Furthermore, our net operating profit reached TL 1 billion 76 million with a 69% year-on-year increase, and we posted TL 1 billion 42 million in net profit. In 2021, our commercial vehicle and defense industry sales showed a balanced distribution in our revenues.”
Serdar Görgüç added that the company’s existing and new product development activities continued throughout the year. “Our research and development investments increased by 49% year-on-year, amounting to TL 300 million. As a result, our R&D expenditures in the last decade correspond to 8% of our revenues on average.”
General Manager Serdar Görgüç noted that Otokar maintained its leadership in the bus segment. “We maintained our leadership in the Turkish bus market for the 13th time, with nearly one out of every two buses sold in 2021 bearing the Otokar brand. We were awarded public transportation tenders by Istanbul, Ankara and Izmir municipalities, becoming the bus supplier of the three largest cities in Turkey. Otokar was also the most preferred brand in tourism buses and personnel shuttles. I want to thank our clients for their trust in us.”
Serdar Görgüç pointed out that in addition to its position in the commercial vehicle market with its buses, Otokar is also a key player in the 8.5-ton light truck segment. “We increased our sales in the 8.5-ton light truck segment, exceeding market growth.”
“Otokar buses are currently used in more than 50 countries, particularly in Europe for passenger transportation,” said Serdar Görgüç: “In 2021, we continued to grow in Europe, our primary target market. For instance, the buses we produced for the capital of Slovakia started serving the city. In addition to our ongoing exports to European countries, including Spain, France, Germany, and Italy, we received high-volume orders from the Middle East markets. We are proud of the buses we design and manufacture in Turkey being used across the world in many metropolises. Starting with cities in Europe, we see many municipalities adopting sustainability to tackle climate change. As a result, there is growing interest in alternative-fuel vehicles. As a key player in the global competition for alternative-fuel vehicles, we received orders for CNG-powered public transportation buses from Ukraine, Romania, and Azerbaijan.”
Görgüç added that Otokar continued to promote its next-generation electric bus in Turkey and Europe. “We launched the European demo tour of our electric public transportation bus at IAA Mobility 2021, where it carried 2,000 passengers during the exhibition. Following Germany, the tour continued with Spain, Italy, France, Romania, and Benelux countries, where the users and operators showed great interest in the bus. We aim to grow our business in this segment in the coming years with more vehicles in Europe.”
With ongoing investments in the plant for commercial vehicle production and as part of the agreement signed with IVECO BUS in 2020, the company began manufacturing and delivering the first buses made in Turkey.
Serdar Görgüç reminded that the Otokar military vehicles, actively serving in NATO forces and United Nations peacekeeping missions, are exported to more than 35 friendly and allied countries. Görgüç provided some details about the company’s defense industry activities: “Last year, we mainly focused on delivering the orders we had received from different countries. Meanwhile, we also found the opportunity to participate in fairs and exhibitions around the world and physically meet existing and prospective clients as the pandemic restrictions on international travel lifted. Furthermore, our ARMA 8x8 armored vehicle and TULPAR tracked combat vehicle passed the rigorous tests of the Kazakhstan Army with flying colors. We also took an important step toward building our unmanned ground vehicles segment by signing an international agreement to develop autonomous military vehicles.”
“Otokar moves forward with confident steps toward becoming a global brand as it continues to build on its technology and innovations capabilities,” said Serdar Görgüç. “Our R&D expenditures reached TL 1.6 billion in the last decade. Furthermore, we have been included in the Borsa Istanbul Sustainability Index for six years as a testament to our environmental, social and governance performance. Therefore, sustainability is a key focus in our activities. In addition to studying how the European Green Deal would impact our trade with the EU, we also follow Koç Holding's 2050 Carbon Neutral Program, an important part of the group’s Cultural Transformation Program. Accordingly, our work concentrates on alternative fuels, energy efficiency, and green sourcing.”
Serdar Görgüç noted that Otokar aims to maintain its sustainable growth in 2022: “We remain committed to our goal of becoming a global player in the automotive and defense industries. In commercial vehicles, we aim to maintain our leadership position in the domestic market and to increase our share in international markets, especially Europe, by selling more vehicles. In the defense industry, we will continue to offer our products and capabilities to benefit our country and strive to expand our presence in our international target markets. The dedicated efforts of our employees, the trust of our clients, and the harmony and cooperation with our business partners will drive us toward attaining these goals.”