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Türkiye’s Vestel unveils new mobility unit, sets sights on growth

Turkish home and professional appliances manufacturing company, Vestel, which specializes in electronics, unveiled Thursday its new startup unit “Vestel Mobilite,” which unites all mobility and energy storage projects, run on substantial investments throughout the last 10 years, under a single umbrella organization.

The new company for the production of electric vehicle (EV) charging stations, energy storage systems and automotive electronics was introduced at a news conference attended by Vestel CEO Ergun Güler.

The company aims to turn its newly founded mobility and energy storage unit into at least a $1 billion (TL 32 billion) business in three years, according to Güler.

In his keynote speech, Güler introduced Vestel Mobilite as a newly established entity that represents a divergence from the parent company’s traditional focus on the production of white goods and electronics.

Traditionally a consumer electronics and durable goods manufacturer, Vestel branched into auto electronics and display systems through its partnership with the country’s first electric vehicle producer Togg, the best seller in the local market.

With the global-scale paradigm shift toward electric vehicles, Güler said the company aims to align with this trend and participate more in this market.

Vestel CEO Ergun Güler, Istanbul, Türkiye, April 4, 2024. (IHA Photo)
Vestel CEO Ergun Güler, Istanbul, Türkiye, April 4, 2024. (IHA Photo)

The company’s interest in this sector has extended to a 23% stake in Togg, the Turkish EV manufacturer headquartered in the country’s northern Kocaeli province and founded in 2018 by a joint venture of five Turkish companies.

Vestel intends to work on the software and technology for the in-car screens, or what he calls “the computers of the cars,” which Vestel already manufactures and supplies.

According to Güler, the company’s ultimate goal is to develop its role as one of the most important players in EV charging stations, with a larger global share in this field.

He also pointed out that by 2030, electric vehicles are expected to reach a 45% share of overall global vehicle sales, subsequently creating significant opportunities in automotive electronics with an increasing demand for EV charging stations.

He described the company’s ambitious goal to establish itself as a leader in technology in Türkiye with the hope of obtaining a ranking in the Fortune Global 500, an annual ranking of the top 500 companies globally based on revenue.

As part of its new growth strategy, Vestel aims to grow “exponentially” in its newly founded mobility unit, hitting either $1 billion in revenue or market capitalization in three years, Reuters quoted Güler as saying.

“We are open to all collaboration or partnerships,” he said.

Vestel Mobilite will operate in Europe, the Middle East and North Africa (MENA) – markets worth a collective $580 billion – focusing on EV components, charging stations and large-scale electricity storage systems.

Vestel also signed a non-binding agreement with China’s Shenzhen Desay Battery Technology Ltd. to design and assemble commercial-scale battery modules in Türkiye, Vestel Mobility’s head Hakan Kutlu said.

The company will consider an initial public offering (IPO) once operations are mature, Kutlu said, without elaborating.

Battery production capacity is expected to begin at 2 gigawatts (GW) per annum, with sales initially geared to local hybrid power plants, where electricity storage is integrated into renewable energy plants.

Vestel has produced electric charging stations for the past seven years, exporting to more than 30 countries, including Poland, Spain, Italy and Greece.

Its portfolio consists of charging units capable of charging from 60 kilowatts to 720 kilowatts, but Güler said 1,000 kilowatt units would hit the market in January 2025.

The company is on a fast track with its R&D, production, sales and marketing teams and has a presence not only in Türkiye but also in the Netherlands, the Far East and India.

Parent company Vestel aims to double its core electronics and durable goods revenue over the next three years from around $4 billion currently, Güler said. The company has not yet released its end-2023 financials.

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