Eskişehir is taking a strong step forward on its way to becoming Turkey’s automotive production hub. With the facility to be established in Eskişehir OIZ, URZAT Otomotiv A.Ş. is launching a major investment for the production of high-technology electric and hybrid vehicles.

The fact that the spark of the “Devrim Cars” has become embedded in the city’s culture was a decisive factor in our investment decision

A new chapter is opening in Eskişehir in Turkey’s journey to enhance its global competitiveness in the automotive sector. URZAT Otomotiv A.Ş., which holds the production representation in Turkey for the China-origin SWM and JAC brands, is taking the first step of a long-term investment focusing not only on production, but also on technology, employment, and localisation, with the advanced assembly facility it will establish in Eskişehir Organized Industrial Zone. URZEMA Holding CEO Murat Ertaş shared with EOSB Magazine both the strategic motivations behind the investment decision and the role of Eskişehir in this major journey. CEO Ertaş explained the reasons for choosing Eskişehir with the following words: “Eskişehir is a highly valuable location for us. The city’s skilled workforce, the integration of technical education at every level into production, its geopolitical position, and most importantly, the fact that the spark of the ‘Devrim Cars’ has become embedded in the city’s culture were decisive factors in our investment decision.”

As URZEMA HOLDİNG A.Ş., what are the strategic and economic reasons behind your decision to invest in Eskişehir? What position are you targeting in the Turkish market?

The additional tax obligations imposed on China-origin vehicles in 2024 have made it necessary for Chinese brands to develop a model that contributes directly to the Turkish economy, rather than acting merely as “importers.” Otherwise, they would not be able to offer affordable luxury standards to Turkish consumers.

Eskişehir is a highly valuable location for us at this point

Together with our esteemed business partner Atmo Engineering, we worked on an alternative that could solve this issue. As a result, we decided to establish URZAT OTOMOTİV A.Ş.

As URZAT OTOMOTİV A.Ş., considering the priorities and goals of the Ministry of Industry and Technology in this field, we decided to develop investment options in Turkey for the SWM and JAC brands we represent, especially in cases where Chinese-origin brands face such challenges.

In this context, we held consultations not only to convince the brands to invest but also on the investment models personally conducted by the Ministry of Industry and Technology.

Although the investment itself consists of different stages, as URZEMA Holding A.Ş., our ultimate goal is to ensure that Turkey becomes a production centre for many brands in the export market in vehicles equipped with electric and advanced hybrid technologies.

Eskişehir is a highly valuable location for us at this point. The city’s skilled workforce, the integration of technical education at every level into production, its geopolitical position, and the fact that the spark of the “Devrim Cars” has become embedded in the city’s culture were decisive factors in our investment decision. In particular, the professional structure of Eskişehir OIZ, their readiness to contribute to the project’s development phases, and most importantly, their support for us are the key motivating factors behind starting this process in Eskişehir today.

The ultimate production target is to reach an annual capacity of 200–250 thousand units. This will make us one of the major manufacturers in Turkey. As a company, we anticipate that more than half of the production will be export-oriented, and we firmly believe we will achieve this target.

Of course, this is a process that contains very serious investment dynamics within itself.

For example, the establishment of an R&D centre jointly with the Technical University for engineering studies and the development of the supply industry, among others.

All these elements must progress in coordination and through collaboration with all stakeholders.

Can you provide details about the capacity, production volume, and investment size of the factory to be established in Eskişehir? Which models will be produced there?

The factory to be established in Eskişehir is fundamentally an investment we define as a “School.” It is a facility that will contribute to the development of our personnel for the main production plant we aim to reach upon completion.

Therefore, the capacity that this facility will gradually achieve is 40,000 vehicles per year.

Since the investment itself is structured as an “Advanced Assembly Facility,” it is technically not possible for the capacity to exceed the specified numbers.

Currently, the schedule for five confirmed models is in place, and an additional model is planned to be produced within the main facility in 2026 with higher capacity, taking into account the global demand that year.

This facility will produce the G01 Pro and G03 models of the SWM brand, and from 2027 onwards, vehicles in the MPV segment.

Likewise, production of JAC’s E30X and T9 models is planned at the same facility. The production of an additional model is foreseen for 2027.

What will be the contributions of this investment to Eskişehir and the regional economy? How many people do you plan to employ initially?

In the development of the facility (construction and infrastructure works), we are already working with suppliers from the region. As a continuation of this business model, all elements such as the supply of technical equipment required for the production line, transportation and meal services for employees, and local supplier agreements are also being sourced from the Eskişehir region.

For now, there will be employment for 60–100 people. However, this number will increase in the later stages of the project. When the facility starts operating at full capacity, it will provide direct employment for an average of 300–350 people.

The factory to be established in Eskişehir is fundamentally an investment we define as a “School.”

What is your plan regarding localisation and the supply chain in Turkey’s production process? Will there be cooperation with Turkish suppliers?

From the very beginning, this issue has been a “non-negotiable” matter on URZEMA Holding A.Ş.’s agenda. Localisation is a process, and our ultimate goal is to achieve a localisation rate above 51%. Naturally, this process cannot take shape solely according to our wishes. Our local manufacturers are already working closely with our engineering teams to support us. Knowing the importance of each component to be implemented and considering the regulations to which the produced vehicles are subject, we are working in line with the schedule to improve localisation rates with domestic suppliers.

The technical requirements and the experience of our manufacturers in this field enable the process to progress faster than we expected.

The Eskişehir location also offers significant advantages in terms of supply chain management. It provides high access frequency to suppliers in the hinterland and, logistically, its position on the main transport route is a major opportunity.

What strategy will you follow regarding whether the produced vehicles will be for the domestic market or for export? Is the European market particularly targeted?

The sale of the models to be produced in the European market is already part of our main business plan. However, domestic market interest is so high that there will initially be little opportunity to realise the export-planned volumes.

This investment plan is fundamentally based on making Turkey a production hub that is ready for Euro 7 in Electric and Advanced Hybrid Technologies. Therefore, more than half of the large investment’s capacity will already be export-oriented. The current facility reaching an equivalent level in this regard will be possible when there is a relative slowdown in domestic market demand.

The facility located within Eskişehir OIZ has a strategic plan to produce electric vehicles in the light commercial vehicle segment in the future, focusing primarily on exports to Europe. In this case, it is certain that the facility will inevitably gain an export-oriented identity.

What is the vision of URZAT OTOMOTİV A.Ş. regarding advanced technology, environmentally friendly production, and electric vehicles? What type of production is targeted in this area at the Eskişehir factory?

Europe plans to transition to Euro 7 by 2027. This already means that the global demand for Advanced Technology and Eco-Friendly Vehicles will mark the beginning of a new era.
It is worth reiterating the answer we gave to the question “Why Eskişehir?”. If we aim to become a player that shapes the dynamics of the sector in the future, we must achieve the same success in developing independent technology in the automotive field as we did in the defence industry. In this journey, Eskişehir’s academic background and industrial experience provide us with a unique environment.

The facility’s attribute as a “SCHOOL” will allow it to develop into an R&D centre in the coming years. After the main investment, this facility will evolve into a structure where advanced technologies are tested, developed, and implemented. It will become a significant centre of attraction in its own right. The best examples of this are the supportive and gratifying approaches from many qualified individuals and institutions that have reached out to us since the moment the investment information was shared.

As URZEMA HOLDİNG A.Ş., while there are many alternative regions in Turkey, what were the main reasons for choosing Eskişehir for this investment?

How did the city’s industrial infrastructure, logistics position, or workforce potential influence this decision?

Successful business plans develop on the foundation of strategic thinking. It is highly valuable that the cornerstone of such a significant investment strategy lies in Eskişehir. It is crucial that the geography where the investment takes shape possesses a technical knowledge level that supports the nature of the investment.

Eskişehir has been highly successful in industrial production for many years. Moreover, this success spans a wide range of fields and is consistent. From a technical perspective, this city produces refrigerator motors as well as aircraft engines. Eskişehir manufactures locomotives… Therefore, the existence of many alternative regions cannot be denied. However, none of these regions possess the ecosystem that Eskişehir has. Thus, Eskişehir stood out primarily with its technical heritage.

Afterwards, the city’s developed industrial infrastructure — especially the successful work of Eskişehir OIZ — was another decisive factor for us.

It is a logistically advantageous region. Perhaps not a port city, but it offers a junction-like infrastructure opportunity in terms of railways, which are a very important logistics solution today. Moreover, Eskişehir OIZ has already taken many concrete steps in this regard, which is another positive factor for us.

A qualified workforce is, of course, very important. But even more crucial is the discipline, technical perspective, and self-respect of families working in the industry — these qualities eliminate our greatest uncertainty in the later stages of the investment: qualified human resources. Today, it doesn’t matter how much you invest if your employees cannot grasp its importance or are not sufficiently qualified. In Eskişehir, there is both a professional profile with qualified labour force experience and bright young people who have successfully completed their academic education.

Eskişehir has been highly successful in industrial production for many years. Moreover, this success spans a wide range of fields and is consistent. From a technical perspective, this city produces refrigerator motors as well as aircraft engines. Eskişehir manufactures locomotives…
Behind all of this — and perhaps more importantly — lies the city’s unfinished story related to automobile production. A story of engineers who worked under extraordinary conditions, believed in what they were doing, and succeeded in creating Turkey’s first domestic car — yet a story left incomplete, while neighbouring provinces quietly advanced in this field. This stands as an important source of inspiration and motivation for us.