Istanbul, Turkey, is rapidly positioning itself as a pivotal hub for the future of mobility, a strategic ambition underscored by the recent launch of the “Future of Mobility Fund.” This innovative venture capital fund, primarily backed by automotive giant Ford Otosan, aims to inject significant capital and industrial expertise into Turkey’s burgeoning mobility technology ecosystem. With a target size of $50 million, the fund represents a concerted effort to foster local innovation, attract foreign direct investment (FDI), and integrate Turkish startups into the global automotive value chain.
The establishment of the Future of Mobility Fund, announced on June 16, 2026, is a collaborative initiative between Ford Otosan’s subsidiary, Gembox Teknoloji Girişimleri A.Ş., and Türkiye İş Bankası’s venture capital arm, Maxis Girişim Sermayesi Portföy Yönetim Şirketi. This partnership signals a robust commitment from both corporate and financial sectors to accelerate Turkey’s transformation from a traditional automotive manufacturing base to a leading center for cutting-edge mobility technologies. For international investors, this development highlights a maturing innovation landscape and new avenues for strategic engagement in an emerging market with significant growth potential.
The Future of Mobility Fund: A Strategic Catalyst
The newly launched Future of Mobility Fund is designed to be a catalyst for innovation within Turkey’s mobility sector. Its primary objective is to support Turkey-based startups that are developing groundbreaking solutions across a spectrum of critical areas. The fund’s investment focus is broad yet strategic, encompassing mobility technologies and automotive, Industry 4.0 applications, sustainability initiatives, customer experience enhancements, data analytics, artificial intelligence and connected services, energy management, charging solutions, and advanced battery and production technologies.
Each selected startup can expect an investment ranging from $1 million to $3 million, providing substantial early-stage growth capital. Beyond mere financial backing, the fund offers a unique value proposition: direct access to Ford Otosan’s extensive industrial network, opportunities for pilot applications, technical feedback from industry experts, market intelligence, and strategic collaboration prospects. This hands-on approach aims to bridge the gap between innovative startups and the established automotive industry, facilitating faster development and market entry.
This new fund builds upon Ford Otosan’s existing corporate venture capital arm, Driventure, which was established in 2019. Driventure has historically focused on seed and early-stage startups in mobility, manufacturing technologies, and smart mobility, with individual investments typically ranging from $50,000 to $250,000. The Future of Mobility Fund, with its significantly larger capital pool and investment ticket size, represents an escalation of Ford Otosan’s commitment to nurturing the innovation ecosystem and signals a more ambitious play in shaping the future of transportation. For instance, Driventure recently invested in YED Teknoloji, a startup specializing in electric vehicle charging solutions, demonstrating the practical application of this investment strategy.
Ford Otosan’s Vision for Electrification and Innovation
Ford Otosan, a joint venture between Ford Motor Company and Koç Holding, is already a cornerstone of Turkey’s industrial landscape and a critical player in Ford’s global operations. The company holds the distinction of being the largest commercial vehicle production hub for Ford of Europe, with significant manufacturing facilities in Kocaeli, Turkey, and Craiova, Romania. Its strategic importance is further highlighted by its consistent ranking among Turkey’s top exporters, achieving $14 billion in export revenue in 2023, supplying over 90 countries.
The launch of the Future of Mobility Fund aligns seamlessly with Ford Otosan’s broader strategic vision for electrification, connectivity, and sustainability. The company has publicly committed to an ambitious transformation journey, aiming for 100% zero-emission vehicle sales across passenger, light, and medium commercial segments by 2035, and in heavy commercial vehicles by 2040. Furthermore, Ford Otosan targets carbon neutrality across its production facilities and R&D centers by 2030.
To achieve these goals, Ford Otosan has undertaken substantial investments. The company announced a €2 billion investment plan for next-generation electric and connected commercial vehicle projects at its Kocaeli Plants. Additionally, it plans to invest €490 million in its Craiova plant over three years to support the production of new all-electric models, including the Ford Puma and electric versions of the Transit Courier and Tourneo Courier. These investments underscore a clear strategic pivot towards electric vehicles (EVs) and advanced mobility solutions, positioning the Future of Mobility Fund as a crucial component in identifying and integrating external innovations into this ambitious roadmap.
Ford Otosan’s 2025 Sustainability Report, published in April 2026, further emphasizes its “Future is Now” sustainability strategy, highlighting its determination towards transparency and accountability in its environmental, social, and governance performance. This holistic approach to sustainability, combined with significant R&D capabilities, including over 2,000 R&D employees, positions Ford Otosan as a formidable force driving technological advancement in the region.
Turkey’s Emerging Mobility Ecosystem and Government Support
Turkey’s automotive industry is a vital component of its economy, ranking as the 12th largest automotive manufacturer globally and 4th in Europe by the end of 2024. The sector boasts an installed capacity of over 2 million vehicles and contributed $37.2 billion in exports in 2023. This robust manufacturing base, coupled with a dynamic domestic market and a well-integrated export structure with Europe, provides a fertile ground for mobility innovation.
The Turkish government has actively supported the transition towards electric mobility through various policies and incentives. These include significant Special Consumption Tax (ÖTV) and Value Added Tax (VAT) reductions for electric vehicles, which underwent revisions in July 2025 to establish new ÖTV bands ranging from 25% to 75% depending on motor power and tax base. The government is also heavily investing in charging infrastructure development, with the number of charging stations expected to exceed 30,000 by 2030, up from approximately 11,000 in 2023.
Domestic production is a key focus, exemplified by the national electric car brand TOGG, which has played a significant role in normalizing EV adoption in Turkey. TOGG’s production is projected to increase from 40,000 cars in 2025 to 60,000 in 2026. The government’s High Technology Incentive Programme (HIT-30), launched in mid-2024 with a budget of $30 billion, specifically allocates funds for investments in electric vehicles, batteries, and semiconductors, further demonstrating Ankara’s commitment to becoming a regional production base for high-tech automotive components.
These supportive policies have contributed to a rapid increase in EV adoption. By 2023, electric vehicles accounted for 5% of new car sales in Turkey, a figure projected to reach 15% in 2025 and 30% by 2030. The total number of electric vehicles in Turkey is expected to surpass 250,000 in 2025 and an estimated 6.6 million by 2035. This burgeoning market, combined with a skilled workforce and a strong R&D infrastructure, positions Turkey as an attractive destination for mobility-focused investments.
However, the landscape is not without its complexities. Recent reports, such as the suspension of import tax exemptions for Chinese EV maker BYD over delays in a planned $1 billion factory investment, underscore the government’s expectation for tangible investment and production commitments. This incident highlights the importance of clear execution and adherence to investment agreements for foreign players in the Turkish market.
FDI Implications and Attractiveness for International Investors
The launch of the Future of Mobility Fund, with Ford Otosan as a primary investor, significantly enhances Turkey’s appeal for international investors in the mobility sector. This fund serves multiple purposes from an FDI perspective:
Firstly, it signals a strong commitment from a major multinational and a leading local conglomerate (Koç Holding, through Ford Otosan and İş Bankası, through Maxis Girişim) to foster innovation in critical future-oriented technologies. This institutional backing provides a layer of credibility and stability that can de-risk investments for other foreign venture capital firms, corporate VCs, and strategic investors looking to enter the Turkish market or expand their footprint.
Secondly, the fund’s focus areas directly align with global megatrends in automotive, including electrification, autonomous driving, connectivity, and Industry 4.0. By targeting Turkish startups in these domains, the fund aims to cultivate a pipeline of innovative companies that could become attractive acquisition targets or strategic partners for larger international players. The provision of industrial contact, pilot opportunities, and market insights from Ford Otosan offers a unique platform for startups to scale, making them more appealing to global investors seeking proven solutions.
Thirdly, Turkey’s strategic geographical location, bridging Europe and Asia, combined with its customs union with the European Union, makes it an attractive production and export base. The government’s proactive stance on incentives for high-tech investments, including the HIT-30 program, further sweetens the deal. While FDI inflows in Turkey showed a strong rebound in 2025, reaching $11.4 billion in January-September, with a 45.5% year-on-year increase, the automotive sector’s continuous evolution towards higher value-added production, driven by initiatives like this fund, is crucial for sustaining this growth.
The fund’s emphasis on Turkey-based startups also promotes local content development and technology transfer, which are key objectives for the Turkish government. International investors can leverage this ecosystem to tap into local talent, develop region-specific solutions, and potentially access broader markets in the Middle East, North Africa, and Central Asia.
Conclusion: A Catalyst for Future Growth
The “Future of Mobility Fund,” spearheaded by Ford Otosan, marks a significant stride in Turkey’s journey to become a global leader in mobility technology. By combining substantial capital with invaluable industrial expertise and strategic partnerships, the fund is poised to accelerate the growth of innovative startups, driving both technological advancement and economic development.
For international investors and corporate decision-makers, this development presents a compelling opportunity. It underscores Turkey’s commitment to building a robust, high-tech mobility ecosystem, supported by both private sector giants and government incentives. While challenges such as regulatory shifts and intense global competition remain, the strategic vision and tangible investments, exemplified by this new fund, position Turkey as a dynamic and increasingly attractive destination for foreign direct investment in the transformative future of mobility. Investors looking for early-stage opportunities in a rapidly evolving market, particularly those aligned with electrification, smart manufacturing, and connected vehicle technologies, should closely monitor the trajectory of this fund and the wider Turkish mobility landscape.