Otokar, one of the Koç Group companies, announced its 2018 financial results. Stating that it was overall a more challenging year compared to 2016 and 2017, Otokar General Manager Serdar GÖRGÜÇ said, “We concluded 2018 with turnover of TL 1,679 million.  Proceeding on a clear path with courageous steps towards the target of becoming a global player, Otokar was able to double its export in 2018, compared to the previous year. Our profits reached the level of TL 164 million which is a 65 percent an increase”.

Turkey’s leading automotive and defense industry company Otokar, operating in over 60 countries in five continents with the intellectual property rights owned by the company, shared 2018 financial results. Noting that despite the recession in the domestic market in areas where Otokar is active, Otokar continued to perform its activities in 2018 with the target of becoming a global brand, General Manager Serdar GÖRGÜÇ added, “The recession in the segments in which we are active in the country in the last three years continued in 2018 as well. The fluctuations in the financial markets this year and the cash shortage emerging in the aftermath affected the domestic market adversely. As a result of these developments, Otokar concluded the previous year with a turnover of TL 1,679 million, with a decrease of 6 percent. However, with the help of the plans we made through foreseeing the aforesaid developments and on account of the measures we adopted, we achieved our targets in 2018, and raised our net profit to the level of TL 164 million with an increase of 65 percent”.

Underlining that Otokar, focusing on exports in 2018 as a result of the ambiguity and shrinkage in the domestic market, achieved fruitful results both in commercial and military areas, GÖRGÜÇ continued, “We focused more on exports in 2018. We increased our exports by 99 percent with the help of R&D, our engineering capabilities, our competent human resources, and our powerful sales network and achieved foreign sales of US$ 211 million. The share of exports in turnover reached 65 percent, from last year’s 31 percent. The contribution of our subsidiaries and affiliates in foreign countries and the increase of our exports had a positive impact on our profitability”.

GÖRGÜÇ: “We are not only exporting products, but also technology”

Underlining that critical export agreements had an impact on the export success reached by Otokar, Serdar GÖRGÜÇ said, “Our two export projects which will continue in 2019. The deliveries that started last year made their mark in our 2018 performance. The first of these projects was the contract for the armored vehicle procurement for the Armed Forces of the United Arab Emirates. Our second success was our achievement in the bus tender launched by the Municipality of Bucharest. As a Turkish bus brand, we established a company for the contract containing the eight year after sales services in addition to the procurement of 400 in - city buses, which is the greatest bus export contract ever signed by a Turkish bus brand. When the Bucharest deliveries are completed, it will be the greatest city after Istanbul to which Otokar provides services with the greatest fleet”.

GÖRGÜÇ: “Millions of passengers in over 50 countries are travelling with the comfort offered by Otokar” 

Stating that Otokar has been developing solutions with its own technology, design and applications, compatible with the requirements of customers, and that the company has been continuing to strengthen its position in Europe with comfort, technology and low operation costs in its vehicles, GÖRGÜÇ continued, “Presently, Otokar buses are providing services in over 50 countries such as Spain, Serbia, Germany, Italy, Greece, Belgium, Romania, Poland, Hungary and Slovenia. As a result of the importance we attached to export activities, in addition to Bucharest, we accomplished critical bus deliveries to Germany, France, Poland, Jordan and Tunisia last year. This year, our 34 Doruk buses were launched into service as part of the transportation services of the Municipality of Warsaw in Poland. Our company, which won the bus tender for 100 buses launched by the Municipality of Amman - the capital city of Jordan - in March, received an additional order of 35 buses as a result of the customer satisfaction regarding the buses. We will be delivering new 35 buses to the Municipality of Amman in the spring of this year. This year, we completed the first exports of our city buses that are operated by natural gas, to Spain. In addition to our in - city buses, our vehicles for tourism purposes were admired by European users. This year, we offered Ulyso T, also known as Doruk in our country, to the German market. The sales of this vehicle also started in Italy, France, Belgium and Sweden.”

One out of Every 3 Buses Sold in Turkey was Produced by Otokar 

Sharing information on Otokar’s sales in the Turkish market as well, Serdar GÖRGÜÇ said, “In 2018, the total bus market shrank by 29 percent and concluded the year with the sale of around 3,800 units. In the small and medium sized bus market this shrinkage was 23 percent, while in the market of buses with the length of over 12 meters and the in - city bus market shrinkage was 50 percent. Otokar designs and manufactures municipality and public buses in the passenger transportation segment in addition to buses used to transport personnel and buses for tourism purposes.  For over 55 years Otokar has fulfilled all the expectations with its large product range and with the solutions offered according to user requirements as well as the after sales services. In 2018, almost one out of every three buses sold in Turkey was an Otokar bus in the segments in which we are active.”

Stating that Otokar enjoyed the pride of becoming the leader for the tenth time in the same category by maintaining its leadership in the bus segments in which the company was active, GÖRGÜÇ said, “Our in - city bus deliveries across the country from Mardin to İzmir, from Tekirdağ to Antakya continued. By listening closely to the transportation industry, and through projecting the changing requirements, we continued product development activities uninterruptedly. The admiration gained by our vehicles which were renewed last year and also as a result of the renewed positive forecasted outlook for the tourism industry for the second half of the year, our sales were affected positively.”

GÖRGÜÇ: “We will focus on exports to become a global brand”

Noting that Otokar started the year 2019 with new and critical targets, Serdar GÖRGÜÇ said, “This year, we aim to continue to be the first brand of choice for the in-city and touristic transport needs of the industry with our buses that are most compatible with expectations of customers. We aim to maintain our leadership in Turkey’s bus market. In addition to this, we will progress on the path of becoming a global brand by focusing more on the export activities in 2019. This year, we will continue the delivery of the orders we received and strive to increase our presence in our target markets with our vehicles which will be developed especially for the foreign market. We aim to manufacture products and services with high added value in the most effective manner by correctly interpreting the expectations and requirements of our customers, keeping up with the swift changes in technology and benefiting from the opportunities brought about by digital technologies.”

First Lot of RABDAN 8x8 Armored Vehicles Started to be Delivered to the UAE

Moreover, as part of the financial results of 2018, the company mentioned that the first armored vehicles were delivered to fulfil the United Arab Emirates’ Armed Forces amphibious 8x8 armored vehicle demands.  The contract is worth US$ 661 million and was signed at the IDEX 2017. The report also read that additional COBRA-II orders were received from the Presidency of Defense Industries in accordance with the needs of the domestic security forces concerning the domestic military programs and the related deliveries were accomplished within 2018. It was also announced in the report that another order, valued at US$ 28.9 million, for the COBRA-II 4x4 armored vehicle was received from an Asian country in 2018 .