The e-mobility market in SEE

As Europe looks to become carbon neutral by 2050 and the European Green Deal becomes a key part of the continent’s economic policies, interest in making the automotive industry cleaner, and boosting the uptake of electric vehicles, is now high on the agenda of manufacturers, investors, and consumers alike. Southeast Europe is no exception, with several countries in the region updating their public transport fleets with electric vehicles (EVs), offering subsidies for electric car purchases, and even producing electric cars of their own.

New EV projects in Turkiye

The country has turned into attractive ground for the production of electric vehicles due to several interrelated factors. Firstly, Turkiye’s strategic geographical location makes it a gateway to the European market, which is one of the largest consumers of zero emission cars. This geographical position also allows it to profit on its proximity to developing markets, which could lead to an increase in domestic sales.

In addition, Turkiye’s government has put in place a number of initiatives aimed at drawing in automakers. The country has implemented business-friendly policies and incentives, including tax breaks, grants for research and development, and subsidies, to promote investment in the EV industry.

The government has set ambitious goals for increasing the number of EVs on the road and building the necessary charging infrastructure, which contributes significantly to improve the business environment, making it more favourable for foreign investment.

Additionally, Turkiye boasts a highly qualified labor force, including numerous engineers and technicians with the necessary skills to support the manufacturing of electric vehicles and associated technology. This workforce, combined with relatively low labour costs in comparison with other European countries, makes the country a profitable location for electric vehicle manufacturing.

Lastly, Turkiye has access to critical minerals and materials required for the manufacturing of batteries, a crucial part of electric vehicles. This allows producers to limit supply chain risks and expenses.

The local brand Turkiye’s Automobile Initiative Group (TOGG) has managed to position itself as a symbol of Turkish innovation in the automotive industry. Its plant in Gemlik, in the Bursa province, began production in 2022, launching a C-segment SUV under the Togg brand. This brand, representing the country’s first comprehensive effort to develop and manufacture a high-quality electric car, aims not only to meet domestic demand but also to compete in international markets.
TOGG was established in 2018 under the leadership of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) by companies of Anadolu Group, BMC, Root Group, Turkcell and the Zorlu Group via a collaboration. By 2030, TOGG will produce and own the intellectual and industrial property rights of five different electric vehicle models in Turkey: SUV, b-SUV, sedan, c-hatchback, and b-MPV.

In 2024 the Turkish Ministry of Industry and Technology signed a USD 1 billion landmark investment agreement with China´s BYD, the world´s largest EV manufacturer, at an official ceremony held in the Presidential Working Office in Istanbul. As per the agreement, the Chinese carmaker will build an electric and plug-in hybrid car production facility with the capacity to manufacture 150 000 units annually, alongside a sustainable mobility and R&D center. The facility aims to create up to 5000 direct jobs and is scheduled to commence production by the end of 2026. According to experts in the field this strategic investment underscores Turkiye´s burgeoning significance in the global automotive industry and its potential as a key hub for advanced technological production. The new factory is expected to enhance Turkiye´s manufacturing industry by incorporating cutting-edge technologies, fostering innovation, facilitating know-how transfer, boosting local production capabilities, and creating a significant regional supply chain.

Ford Otosan’s factories in Kocaeli extend over almost 1,7 million square metres, including the Yenikoy and Golcuk plants and a parking area and shipping port for finished vehicles. The company plans to reach capacity of more than 900 000 vehicles at its four plants (three in Turkiye and one in Romania). Ford Otosan has increased capacity at Kocaeli and installed a battery assembly line with a production capacity of 130 000 units, in line with its goal of becoming Turkiye´s first integrated electric vehicle production plant. Ford Otosan’s Kocaeli plants won the World Economic Forum´s (WEF) Global Lighthouse Network award among all Ford plants worldwide and is the second vehicle plant to do so.

Furthermore, Renault Group, in collaboration with the Turkish conglomerate Oyak, has reinforced its commitment to Turkiye with a USD 431 million investment that will extend until 2027. This investment is aimed at the production of four new electric models in the Bursa province, consolidating Turkiye’s position as a key manufacturing hub for the brand, a move that highlights the country’s strategic importance for Renault, which seeks to capitalise on the growing demand for electric cars both locally and in the neighbouring markets.

The first autonomous EV production facility in Croatia

Construction of the first autonomous vehicle production facility in Croatia has recently made good progress on a 28 500-square-meter site within VGP Park Zagreb, in Lucko. This project is a collaboration between Verne, a Croatian company developing an innovative ecosystem for urban autonomous mobility, and VGP, a pan-European provider of high-quality logistics and semi-industrial real estate. At the new 10-hectare business park in Lucko, the works are progressing on a facility for the large-scale production of autonomous electric vehicles.

"The construction of the Verne large-scale production factory is a strategically important step for our company and a significant contribution to the development of a future-oriented automotive industry in Croatia. This is the first factory of its kind in the region, positioning Croatia as a key player in the modern automotive industry. Verne vehicles for all markets will be produced in Croatia and exported globally. We are pleased to collaborate with VGP, an industry leader whose in-house technical expertise ensures the successful implementation of this complex project, from development to property management. It’s important to mention that the construction of the Verne factory, its maintenance costs, along with additional resources Verne will invest in equipment are entirely funded through private investments and are not connected to EU funding", said Marko Pejkovic, CEO and Co-founder of Verne.

The start of construction at VGP Park Zagreb marks VGP’s first investment in Croatia. The production facility for autonomous electric vehicles will be built according to Verne’s requirements and specifications, while the factory building will be owned by VGP. The factory will be on a long-term lease, which is a standard business arrangement for industrial facilities.

The production facility, that aims to obtain the BREEAM Excellent certification and comply with EU Taxonomy, will be equipped with state-of-art technology for manufacturing, assembly and testing of Verne autonomous vehicles. The realisation of this project will bring numerous benefits to Croatia and represents a significant step forward in the development of digital and green production technologies. Upon completion, the factory is expected to create up to 400 job positions.

The end of construction works is planned for the end of 2025, while the factory will start operating in 2026, according to the project timeline. Initially, Verne will produce several hundred vehicles. The production volume will increase over time, following the development and scaling up of the project.

EV charging solutions development in Bulgaria

AMPECO is a software company that offers a white-label and hardware-agnostic EV charging management platform bundled with white-label EV driver apps. The company delivers a globally recognized product and high-quality services to companies who need to manage their EV charging infrastructure, processes, and efficient energy usage.
AMPECO´s cloud-based platform addresses specific EV charging challenges, especially in energy management. The company´s API seamlessly integrates with smart meters, building management systems, and renewable energy sources to maximize efficiency. It uses dynamic load management to support priority charging and demand-response events and efficiently distribute the available power to avoid costly grid upgrades.

In November 2024 AMPECO announced that the company had raised USD 26 million in Series B funding, led by Revaia, with continued support from its existing investors Cavalry Ventures, BMW i Ventures, and LAUNCHub Ventures. This milestone brought AMPECO’s total funding to USD 42 million since the company’s founding in 2019, marking a significant step in its journey to enable and accelerate the global transition to electric mobility. The Series B funding will fuel AMPECO’s growth plans while accelerating product enhancements and expanding into key markets like Western Europe, the Nordics, the UK, North America, and Southeast Asia. To support this, the company aims to double its team size over the next two years.

Gemamex Motion Co. is another Bulgarian company in the field of e-mobility, manufacturing powerful charging stations for electric buses with ultra-capacitors. The company’s production range is focused on developing fast charging stations with a power of up to 450 kW (single module) for an alternating supply voltage of 3 x 400 VAC and a power of 250 kW (single module) for a constant supply voltage of 660 VDC. The single modules can be connected in parallel, which doubles the above capacities to 900 kW or 500 kW respectively. Fast charge technology is applied, where according to the energy capacity of the ultra-capacitor, about 5 – 8 kWh of energy can be charged in one minute. The charging is performed through charging pillars, and it is possible to work with both a two-pole and a four-pole pantograph. These charging stations can also be upgraded for DC charging of buses, trucks and electric cars with standard batteries via a cable with CCS2 interface. Gemamex Motion Co. also offers software for monitoring the charging processes with options for energy management of the bus auto park.

Recent developments in Slovenia and Romania

In July 2024 Slovenia’s government signed a Memorandum of Understanding (MoU) with Renault for the development and production of Twingo E-Tech electric cars in Novo mesto. The MoU set out possible government support for the development and production of the new electric city car at the Revoz plant.

After more than 50 years of Renault car production in Novo mesto, including electric cars, the plant will benefit from extensive investment in new production processes. Following discussions with the investor, the Slovenian Government decided to support the investment, thereby ensuring the future of the Revoz plant in Novo mesto. This move will secure not only Slovenia´s future as a car manufacturer but also its transition into an electric vehicle manufacturer.

The future electric Twingo E-Tech model is Renault´s response to Europe´s need for affordable electric city cars, aiming to make electromobility accessible to all. This new project will accelerate digitalisation and decarbonisation efforts, provide additional training and retraining for employees, create new jobs, and strengthen Revoz´s cooperation with Slovenian development institutes and innovation clusters.

At the end of October 2024 Ford Otosan inaugurated a new battery production line at its factory in Craiova, Romania. The new assembly line will support the future production of electric vehicles at the plant. Last year Ford Otosan Craiova started the production of electric versions of Ford Transit Courier, Ford Tourneo Courier, as well as Puma Gen-E models, as part of the EUR 490 million investment, announced in 2022, when Ford Otosan took over the Craiova plant.