The First Half of 2021 with Record-Breaking Production and Export Volumes
TürkTraktör, the first manufacturer of the Turkish automotive industry, broke new records by increasing its production volume by 105% and exports by 31% in the first half of 2021. Growing in parallel with the increasing strategic importance of agriculture in the first six months of the year, affected by the uncertainties imposed by the pandemic, TürkTraktör increased its total sales by 94% and its turnover to TRY 5 billion 576 million. The company completed the first half with a total production of 25,335 tractors, realizing two thirds of the total tractor production of Turkey. Carrying out 88% of the tractor exports to foreign markets, TürkTraktör enjoyed a 30% share of exports in total turnover.Driven by the significant increase in the production volume, TürkTraktör increased its turnover to TRY 5 billion 576 million in the first half of the year, and achieved an operating profit margin of 14,1% and EBIDTA margin of 15,5%. TürkTraktör’s net profit for the first six months of 2021 amounted to TRY 608 million.
Aykut Özüner, TürkTraktör CEO, said that the driving force behind the performance achieved in production and exports in the first half of 2021, plagued with uncertainties, was the R&D studies that enabled TürkTraktör to maintain high quality production at low costs. Highlighting the role of the R&D centers in the increase in efficiency, Özüner underlined TürkTraktör’s unique position in the sector as the only company operating two R&D centers. Özüner emphasized that the pandemic made every player of the sector understand the importance of productivity and sustainability in agriculture, adding: “There are three important factors behind TürkTraktör’s success as the market leader for 14 years in a row. The first is our strong and unique R&D prowess. We allocate an average of TRY250-300 million for investments. Another factor is our flexible production capability that enables us to manufacture a wide range of products in high quantities, which are much needed in agriculture. The third and last factor is our wide and reliable sales and after-sales service network. We continuously support our farmers with our 500 service centers and 150 spare part dealers throughout Turkey.”
Four-fold sales increase in domestic production construction equipment
Stating that TürkTraktör has filled an important gap in the construction equipment sector since the company’s first steps into the sector in 2013, Özüner said: “The positive contribution of domestic construction equipment, which we started to produce in 2020, to our non-tractor income continues to increase by accelerating. In 2020, we started to manufacture our range of backhoe loaders under the New Holland and Case brands at our Ankara Factory. We increased our market share in a short time. We completed the sale of 269 construction equipment in the first half of the year. We aim to improve our recognition in the sector and increase our market share in the following months of 2021.”
TürkTraktör’s new manifesto for the future of Turkish agriculture
Adopting the vision of “Being the leading company in modern agriculture”, TürkTraktör aims to continuously support farmers in sustainable agricultural production. TürkTraktör announced and promoted this aim with a manifesto. According to the TürkTraktör Manifesto composed of five items, the company will boost its efforts to democratize the use of technology in agriculture, conduct projects to strengthen the perception of Turkish farmers about the environment and climate change, continue R&D studies for the development of agricultural equipment to increase productivity in production, shoulder more responsibility for the protection of Turkish agriculture, and finally, raise public awareness about sustainability.
