We talked about “The Future of Mobility Ecosystem” in Uludağ Economy Summit.

We talked about “The Future of Mobility Ecosystem” in Uludağ Economy Summit.

- “The Future of Mobility Ecosystem” during the second day of the Economy summit organized in Uludağ between 22 and 23 March 2019 by Capital and Ekonomist.

Gürcan Karakaş, our CEO talked about the mega trends re-defining the mega trends and transformation born by such trends and the achievements contributed to Turkey by TOGG launching its operations beyond the automobiles.

Karakaş said that there have been 3 dimensional changes born by the mega trends regarding the mobility ecosystem in the speech he made in the session “The Future of Mobility Ecosystem” chaired by Cem Baver Özalp, Martaş Otomotiv Board of Directors Member in Uludağ Economy Summit. Having stated that such transformations are the technological transformations on automobiles, social life and trends on which law makers and governments are based, Karakaş added that:

“The transformation of electrical vehicles into a purchasable version with the developments in the electricity engines with battery technology constitutes an alternative for internal combustion vehicles. This process gets accelerated with the development of the environmental awareness and pressure of the emission laws. Therefore, we believe that the electrical vehicles will substitute the incombustible vehicles within a short period.

Touching upon the importance of the autonomic driving, Karakaş said that: “When autonomic driving is brought together with the development in the sensor technology and the development in the digitalization, automobile gets into a different position. What we can do in our houses, we can do in our vehicles as well because the driving will not be our main focus in the vehicle. We define this as the transformation of the automobile into a life space.”

- “Very attractive market is being developed.”

Karakaş drew attention that the automobile sensors will be able to communicate with the smart cities as the cities get smarter thanks to the technology and stated that:

“Automobiles are transforming into a smart device or walking computer which can communicate with the devices, refrigerators, buildings, sites, cities and traffic security systems of the city at the houses. When we have taken into consideration all of them, everything that has happened to mobile phone is happening to automobile for the time being with all usage areas. Once we could only use mobile phone for calling someone, but now I can do anything. Automobile will not be different. Because it is within a transformation process just like this.”

Stating that there have been various countries that are aware of this transformation and consider this is an opportunity, Karakaş told that Turkey is one of those countries. Karakaş made this explanation:

“There are countries which consider the technological transformation, especially the one in automobile as an opportunity and therefore change their current positions and laws even shape it with the help of their law makers up to the urbanization sense. Chine is the pioneer country in this sense. Especially on the electrical vehicles, China has made investments in significantly high amounts. China will make investment for 130 billion dollars in the next 10 years. And other automobile manufacturers will make investment for 300 billion dollars within the next 10 years because if they do not take place within that transformation process, the share within the total profit pool will decrease. When all profits obtained in 2017 in automobile sector are taken into consideration, the income obtained from the new employment opportunities corresponds to the 1% of the profit. And this increases to 40 in 2035. Therefore, 40% of the profitability to be realized in 2035 will be obtained from such new areas. Otherwise the share taken by classical automobile manufacturers from the current business will be 60% in 2035. Profitability rates are much higher in new technologies. So, a very attractive market is being developed.”

- “There is a real opportunity.”

Pointing out that Turkey is not indifferent to the transformation in the world and mega trends, Karakaş expressed that: “We are saying YES when we are asked about an opportunity. There is a real opportunity. This is not only born by the transformation of the technology but it is in the market as well.”

Gürcan Karakaş emphasized that the competition has just begun and added that:

“We do not compare ourselves to the manufacturers manufacturing incombustible engine for 150 years. We compare ourselves to the ones who believe that this will be solved with the mobility ecosystem and future will be brought with the transformations and mega trends. There are approximately 500 start-up which have launched this business. Three out of four of them are interested in mobility ecosystem to be raised by such transformation rather than in the automobile itself. This is a great clue for us. There is not high differences between the classical automobile manufacturers and Turkey in this sense. If we compare with the beginners, the distance can be closed quickly.

Touching upon the contribution of the project to the Turkish economy, Karakaş said:

The contribution of the ecosystem which will be realized by the project to the gross national product within 15 years is 50 billion euros and positive contribution to the current account deficit is 7 billion euros and contribution to the employment directly or indirectly will be around 20 thousands of people. When the substitution vehicles, activity of non-dependence to the petroleum and usage of more safe systems are calculated, it will make a positive contribution to the current deficit for 7 billion auros. Everything is based on human. Our company will include approximately 4 thousands of employees. If one person works in automotive, 4 people will work in its sub-industry with their partners. Therefore, we believe we will create an employment opportunity for 20 thousands of people.