May 2025

May 2025 begins on a note of cautious optimism. After months of runaway inflation, the trend has finally started to reverse: inflation dropped to 37.9% in April, its lowest level since late 2021. This sharp decline—from a peak of 75% in the summer of 2024—is the result of strict monetary measures implemented by the Central Bank, which raised its benchmark interest rate to 46% in March to curb imbalances and restore confidence.

However, this easing remains fragile. A spring frost has severely impacted crop yields, raising concerns about renewed pressure on food prices in the coming months. And although overall inflation is slowing, it remains well above desired standards, with projections keeping it in double digits until at least 2026. Still, households in Türkiye are beginning to catch a breath: purchasing power is showing signs of recovery, and while consumption remains cautious, some encouraging signals are emerging.

On the growth front, Türkiye’s economy is expected to expand by 2.8% this year. While modest, this pace also reflects a shift toward more sustainable and better-structured growth. Forecasts for 2026 are more optimistic, with growth expected to reach 3.5%, supported by resilient sectors such as agriculture, construction, industry, and technology, as well as a shared commitment—both public and private—to invest in high-value-added projects. Despite political turbulence, entrepreneurs, investors, and industrial players remain active, demonstrating a deep confidence in the potential of the Turkish market.

In this context, Türkiye continues to attract international investors, thanks to its strategic position between Europe, Central Asia, and the Middle East, and the diversity of its economic fabric. Opportunities remain abundant, and this month of May is yet another example: new investment and expansion projects are multiplying, confirming the continued appeal of the country to foreign investors.

Economic & business news from Türkiye

CEVA Logistics doubles its capacity in Türkiye

French logistics giant CEVA Logistics, a subsidiary of the CMA CGM Group, has announced the signing of a binding agreement to acquire 100% of Borusan Tedarik. The USD 440 million transaction includes the stakes held by Borusan Holding (69.47%) and Borusan Yatırım (30.53%), and also covers subsidiaries in Germany, Bulgaria, Hong Kong, and China. The deal remains subject to customary conditions and regulatory approvals.

Borusan Tedarik, a key player in the Turkish logistics sector with over 50 years of experience, reported a gross revenue of USD 567 million in 2024. The company provides a wide range of services, including contract logistics, road transportation (FTL, LTL), finished vehicle logistics (FVL), air and sea freight, and customs services.

With this major acquisition, CEVA Logistics will add nearly 4,000 employees and almost double the size of its warehousing operations in Türkiye, expanding its footprint by 570,000 m² to reach a total of 1.19 million m². The combined operations will handle nearly one million domestic transport movements per year, strengthen connections with Europe, and place CEVA among the top three FVL operators in the country. CEVA’s sea freight capacity will increase by 25%, and its air freight capabilities will now rank among the top five in Türkiye.

This acquisition is part of CEVA’s ongoing growth strategy, following the recent integration of Horoz Bolloré Logistics, a joint venture formed in 2000 by Bolloré Logistics and Horoz Logistics. With this strategic move, CEVA reaffirms its ambition to become a leading logistics player in the Turkish market.

Source: CEVA Logistics, April 25, 2025

Uber acquires Trendyol GO for USD 700 million

Trendyol Group has announced a major agreement with U.S. tech giant Uber for the sale of 85% of its delivery platform Trendyol GO for USD 700 million. The transaction will take effect following approval by the relevant authorities. This acquisition marks a new chapter for Trendyol GO, which will continue to operate and serve its customers, merchants, and couriers across Türkiye. With over 200 million deliveries and USD 2 billion in gross bookings in 2024 (a 50% increase year-on-year), Trendyol GO has established itself as a key player in last-mile delivery in Türkiye. The platform already connects 90,000 restaurants and 19,000 couriers throughout the country.

Uber plans to introduce select Uber Eats features in Türkiye, enhancing the user experience while strengthening its footprint in this strategic market. For Trendyol, the transaction is seen as a recognition of the strength of Türkiye’s tech and e-commerce ecosystem. The group reiterated its commitment to continue investing in the national economy and supporting local artisans and producers.

For Uber, this acquisition reflects a long-term vision for Türkiye. The company expressed admiration for Trendyol GO’s performance and enthusiasm for supporting its nationwide growth. This strategic alliance perfectly illustrates the momentum of a fast-evolving sector and opens the door to new opportunities for e-commerce and delivery players in Türkiye.

Source: Anadolu Agency, May 6, 2025

Tofaş strengthens its position in the automotive industry

Turkish automaker TOFAŞ has reached a major milestone with the acquisition of the 37.8% stake held by Stellantis, in a deal valued at EUR 400 million. Prior to this transaction, TOFAŞ was a joint venture equally owned (50/50) by Koç Holding (via TOFAŞ) and Stellantis. This acquisition enables Koç Holding to take full control of the company, further consolidating TOFAŞ’s strategic position within Türkiye’s automotive industry.

The transaction is accompanied by key agreements with Stellantis, covering:

• Used vehicle sales and refurbishment
• Spare parts distribution
• After-sales services

TOFAŞ is also expanding its brand portfolio in Türkiye. In addition to FIAT, Alfa Romeo, Jeep, and Maserati, TOFAŞ will now oversee the import and distribution of Peugeot, Citroën, Opel, and DS Automobiles.

To address competition authority requirements, a complementary agreement provides for the production of new light commercial vehicles (FIAT, Opel, Citroën, Peugeot) based on multi-energy platforms. This strategic acquisition strengthens TOFAŞ’s value chain and further confirms Türkiye’s role as a major industrial hub for the European automotive sector.

Source: Türkiye Today, May 1, 2025

SWM Motors to launch production in Eskişehir

Chinese automaker SWM Motors has confirmed the establishment of its first production plant in Türkiye. By the end of the year, the company will begin assembling its restyled G01 and G03 models, in both gasoline and plug-in hybrid versions, in Eskişehir, with an initial capacity of 25,000 vehicles per year.

This milestone marks a strategic shift for the brand, which will stop importing vehicles from China and instead produce them locally for export from Türkiye. The project stems from a partnership between ARMO Group and Urzema Holding, a Turkish company founded by the Öztürk family and active in the commercial vehicle, rail, and defense sectors. SWM Motors has made no secret of its ambitions: to gradually scale up production and position Türkiye as an industrial and logistics hub for the region.

This announcement follows similar investment moves in Türkiye by other Chinese automakers such as BYD and Chery.

Source: Bloomberg HT, May 13, 2025

Turkish Technic partners with Rolls-Royce

Turkish Technic and British giant Rolls-Royce are taking a strategic step forward with the creation of a next-generation aircraft engine maintenance center at Istanbul Airport. This ambitious project, set to become operational in 2027, will be one of the largest Rolls-Royce-approved facilities in the world—and the largest in Europe.

The center will have an annual maintenance capacity of 200 engines, focusing primarily on the Trent XWB-97, Trent XWB-84, and Trent 7000 models used on Airbus A350 and A330neo aircraft. It will serve both Turkish Airlines’ fleet and international airlines that are Rolls-Royce customers.

This new investment is expected to create 1,000 jobs at full capacity and generate around USD 700 million in annual exports throughout the duration of the agreement. Turkish Technic also anticipates a 30% increase in annual revenue, further strengthening its position as a global leader in engine maintenance services.

For Rolls-Royce, the center is part of a global strategy to expand MRO (Maintenance, Repair & Overhaul) capacity by 2030, relying on a network of qualified and resilient international partners.

This project reaffirms Türkiye’s strategic role in the global aerospace industry and marks a new milestone in the industrial development of Turkish Airlines Technic.

Source: Dünya, May 7, 2025

Taiwanese Kymco starts production in İzmir

Taiwanese manufacturer Kymco Group is preparing to launch local production of its motorcycles in Türkiye. Led by Doğan Trend Otomotiv, the official representative of Kymco in Türkiye, this strategic project plans an annual capacity of 20,000 units from the start. The factory will initially produce the SkyTown125 model, aimed at the local and regional markets.

According to Kağan Dağtekin, CEO of Doğan Trend Otomotiv: “Our site has expansion potential thanks to flexible planning. We are becoming the first facility worldwide approved by Taiwanese manufacturer Kymco for such advanced production.”

After China and Indonesia, Türkiye becomes the 4th country to host a production site for the brand, further strengthening its presence in Europe and the Middle East.

Founded in 1964, Kymco is known for its scooters, motorcycles, quads, and industrial engines, with more than 7 million vehicles in circulation worldwide and over 60 models exported each year to Asia, Europe, and the Americas.

This new investment once again illustrates the growing attractiveness of Türkiye for Asian manufacturers in the mobility sector.

Source: Habertürk, May 5, 2025

FutureLife acquires Turkish Group Bahçeci

FutureLife, one of Europe’s leading fertility, IVF, and genetics service providers, announces the acquisition of a stake in Bahçeci Sağlık Grubu, a recognized Turkish leader in assisted reproduction operating in Türkiye, Kosovo, Bulgaria, and Bosnia-Herzegovina.

With over 55,000 IVF cycles performed annually, FutureLife strengthens its market position by leveraging Bahçeci’s expertise, which conducts more than 18,000 IVF cycles each year. For nearly 30 years, the Bahçeci Group has supported over 130,000 patients from more than 100 countries, through a network of six clinics in Türkiye and international centers in Bosnia-Herzegovina, Bulgaria, and Kosovo. Known for clinical excellence and a patient-centered approach, the company is also certified by ESHRE.

Backed by CVC Capital Partners and Hartenberg Holding, FutureLife operates over 40 clinics in 8 countries, employs 1,500 specialists, and runs one of Europe’s largest genetics laboratories. With this acquisition, FutureLife takes a strategic step by entering the high-potential Türkiye market, which attracts strong local demand alongside a growing number of international patients.

The integration of the Bahçeci Group will enable pooling of expertise, accelerate technological investments, and continue advancing reproductive medicine on a global scale.

Source: FutureLife, May 2025

Transatlantic cooperation between ONE and Pomega

Pomega Energy Storage Technologies, a subsidiary of Kontrolmatik Technologies specializing in energy storage technologies, has just entered into a strategic partnership with Our Next Energy (ONE), one of the largest independent battery manufacturers in the United States.

As part of this cooperation, lithium iron phosphate (LiFePO4) battery cells, model "314 Ah LFP," will be produced starting this year at Pomega’s gigafactory in Ankara. This facility will thus become the first and only private installation in the region capable of producing this type of cell according to ONE’s technical standards and in compliance with the requirements of global export markets.

The production capacity, reaching 2 GWh by 2026, is expected to increase to 5 GWh per year starting from 2027. The shared objective is to build a strong industrial base in Türkiye to better respond to market developments and the challenges of technological sovereignty.

This partnership goes beyond cell production alone. It also includes engineering, project construction (EPC), and long-term industrial development. Thanks to its highly automated production lines, rigorous quality protocols, and scalable capacity, the Ankara gigafactory is able to meet international standards and support the joint growth ambitions of both companies.

This agreement marks an important new step for the development of the battery sector in Türkiye and for the consolidation of more resilient international supply chains.

Source: Dünya, 19 May 2025

BMS Group strengthens its EMEA presence through Türkiye

The British BMS Group continues its strategic expansion in the EMEA region with the acquisition of Oria Sigorta, an independent brokerage firm based in Istanbul.

This transaction fully aligns with BMS’s regional growth strategy aimed at extending its presence in the Middle East and beyond. It marks a significant new milestone following targeted acquisitions in the UK, Spain, and its upcoming entry into the DIFC (Dubai International Financial Centre).

The integration of Oria’s team into BMS Türkiye will combine recognized local expertise with the group’s international capabilities. This merger aims to broaden the client base and increase the added value offered to insurer partners and businesses, both in Türkiye and internationally.

Founded in London in 1980, BMS Group is a brokerage firm specializing in insurance and reinsurance, while Oria, an independent company established in 2019, has built a strong reputation in corporate insurance and employee social protection solutions.

On this occasion, Cenk Erden, founder of Oria, joins the board of BMS Türkiye as Chief Growth Officer.

Source: Captive International, 23 May 2025

Khazna deploys next-generation data center

Global leader in digital infrastructure, Khazna Data Centers, is accelerating its international expansion by announcing the construction of a new 100 MW data center in Ankara, within the Başkent organized industrial zone.

This project comes amid a strong momentum around artificial intelligence in Türkiye, where AI talent concentration has increased by 198% between 2016 and 2024 (source: Stanford AI Index 2025). It also follows the strategic agreements signed in 2023 between the United Arab Emirates and Türkiye, totaling over USD 50 billion.

Designed to host high-intensity workloads such as AI and cloud computing, this next-generation data center will be modular, scalable, and engineered to meet future technological needs.

The facility will integrate innovative and sustainable solutions, including:

• Low GWP refrigerants, HFC-free
• Photovoltaic panels
• Recycled and low-carbon footprint materials
• High-efficiency adiabatic chillers
• Wastewater reuse
• Generators running on HVO fuel

This project highlights Khazna’s commitment to supporting Türkiye’s ambition to become a key player in the global digital economy.

Source: Khazna, April 30, 2025

New strategic semiconductor factory

Elin Türkiye will break ground in July on a semiconductor manufacturing plant in the Sivas region. Supported by the HIT-30 program of the Turkish Ministry of Industry and Technology, this project aligns with Turkey’s drive for technological upgrading and reduced import dependency.

Project cost: USD 400 million!

The future factory, specializing in semiconductors used notably in solar technologies and electronic chips, is expected to have an annual production capacity of 5 GW. Ultimately, it aims to cover nearly 70% of national solar cell demand and create 1,500 jobs. Planned in two phases, the facility will start with a 2 GW capacity before scaling up to 5 GW. A significant portion of the output will be exported to the United States, where demand is strong and “Made in Türkiye” products will benefit from reduced tariffs.

The choice of Sivas region is based on strategic criteria: availability of land, water resources, proximity to a university, and a well-connected industrial zone. This project marks a turning point for Turkey, which could become a net exporter of solar cells in the coming years, supported by an industrial ecosystem reinforced by forthcoming international technology partnerships.

Reminder on the HIT-30 program: This initiative by the Turkish Ministry of Industry and Technology supports 17 major industrial projects across 15 cities. The strategic investments cover key sectors aimed at strengthening Turkey’s industry.

Source: Anadolu Agency, May 9, 2025