DOĞUŞ OTOMOTİV

Dear Valued Stakeholders,

At Doğuş Otomotiv, we proudly conclude another successful year, during which we added a new chapter to our over 30-year legacy and reinforced our vision for the future of mobility through concrete actions. I view this period as a historic milestone in our evolution from a “traditional vehicle distributor into a comprehensive mobility services provider”. Over a journey spanning more than three decades, the trust of our over 10.9 million customers and the delivery of more than 2.5 million vehicles to the roads stand as powerful evidence of the solid foundation we have built.

The year 2025 unfolded amid heightened global economic uncertainty, geopolitical tensions, and increasingly forceful trade policies. While vulnerabilities in supply chains, cost pressures, and a persistently high inflation environment continued to shape the global economic landscape, technological transformation, mobility solutions, and sustainability-driven business models advanced without interruption. According to data from the International Monetary Fund, the global economy demonstrated resilience despite this challenging environment, achieving growth of 3.3%.

Türkiye’s economy reflected the global backdrop throughout the year, while maintaining relatively resilient domestic demand dynamics. The effects of policies implemented to combat inflation became particularly visible in the second half of the year. Improvements in financial indicators and declining risk perception supported greater economic predictability. The recovery in consumer confidence, improving access to credit, and stability in exchange rates were among the key factors underpinning the strong momentum in automotive demand.

A year of records and transformation

In recent years, the global automotive industry has been undergoing one of the most profound paradigm shifts of the past century. While the global vehicle fleet is expected to reach 2 billion units by 2030, the most significant growth is projected in electric vehicles, with the global electric vehicle fleet anticipated to reach 78 million units and expand at rates approaching 30%. This powerful wave of transformation was strongly felt in the Turkish market in 2025.

Despite macroeconomic uncertainties and tightening regulations, the Turkish automotive market demonstrated resilience beyond expectations and closed the year with a strong performance. Total market volume grew by 13% year-on-year, approaching 1.4 million units and reaching the highest sales volume in history. The gradual recovery in consumer confidence, relative exchange rate stability, growing interest in electric and hybrid vehicles, expanding model diversity, and the entry of new brands into the market emerged as the primary drivers accelerating sectoral transformation.

Balanced and sustainable growth at Doğuş Otomotiv

By accurately interpreting the sector’s strong performance, leveraging the flexibility of our multi-brand structure, and staying true to our vision of creating “fan customers”, we concluded 2025 in line with our targets, achieving balanced and sustainable growth.

Our total sales exceeded 208,000 units, representing a 10% increase compared to the previous year. While passenger car sales approached 182,000 units, we continued our growth in the light commercial vehicle segment. We maintained our strong position in the Turkish automotive market by increasing our retail market share to over 15%.

The broad product portfolio and strong brand equity of the brands we represent were the primary drivers of this performance. The Volkswagen brand increased its market share, while Audi reached its highest-ever sales figures in Türkiye, supported by a renewed and strengthened product portfolio. Likewise, CUPRA and Škoda each broke their own sales records, while SEAT maintained its strong market presence with robust sales performance. Porsche continued its upward trajectory in the luxury segment with record-breaking sales.

Volkswagen Commercial Vehicles reached its highest sales volume of the past eight years in 2025. In the heavy commercial vehicle segment, Scania increased its market share to over 8%, ranking first in the imported tractor segment. Our other brands also steadily improved their operations and increased market share. Our pre-owned vehicle operations, conducted under the DOD brand, further strengthened our presence in the second-hand market by increasing sales volumes.

Electrification and mobility: Shaping the future today

The automotive world is rapidly evolving from a structure centered solely on technological products into a comprehensive mobility industry addressing diverse transportation needs. In 2025, we began to reap the tangible benefits of our electrification strategy, which lies at the heart of this transformation. Electrification is becoming increasingly decisive in reshaping the industry. Consumer expectations are now grounded in more rational considerations such as driving range, charging time, and total cost of ownership, while advances in battery technologies and the expansion of charging infrastructure further support this transition.

In 2025, hybrid vehicles accounted for 27.2% of total passenger car sales in Türkiye, while electric vehicles reached a 17.7% share. These figures clearly demonstrate that electrification in the Turkish automotive market has moved beyond niche status and firmly entered the mainstream.

At Doğuş Otomotiv, we continued to reflect this transformation in our product portfolio and business model. The electric and plug-in hybrid model rollout of our brands was a key pillar of our sales performance. With new models added to our portfolio, we continued to offer our customers a broader and more accessible mobility experience.

In this era of rapid electrification, our goal was not only to provide vehicles but to establish a holistic ecosystem spanning from charging infrastructure to after-sales services. Recognizing that simply offering a product is insufficient for sustainable growth, we expanded our charging infrastructure, enhanced our battery repair capabilities, and aligned our after-sales organization with this technological transformation.

As the EV market share in Türkiye is expected to reach 30%, expanding the charging infrastructure has become a critical priority. The investments we initiated early on, anticipating this need, now form one of the strongest components of the electrification ecosystem.

Our charging network brand, D-Charge, reached 621 sockets across 45 provinces in Türkiye by the end of 2025, establishing a strong market position. Furthermore, we are implementing transformative advancements in after-sales services by increasing our high-voltage battery repair centers to seven, reinforcing the trust of electric vehicle owners.

A diversifying mobility ecosystem

As the industry transitions from vehicle ownership toward service-based mobility solutions, we continue to diversify our areas of operation. Our service and operational model in marine mobility provides a compelling example of extending our mobility approach into new transportation domains. Following distributor agreements with several prestigious brands, Doğuş Marine further strengthened its portfolio in 2025 by adding Riviera, continuing to carry our mobility vision into maritime transportation.

We also diversified our ecosystem by incorporating micro-mobility solutions and electric bicycles. In 2025, we introduced MATE. to the Turkish market - a globally recognized brand known for its innovative design, strong position in the foldable electric bicycle segment, and sustainability-focused approach.

Technology-driven growth and the entrepreneurship ecosystem

With the vision of not just following change but managing it, 2025 was one of our most productive years in making digital transformation part of our corporate culture. Through our GO-DGTL infrastructure, we invested TRY 116 million in 119 digital projects, including robotic process automation, AI-supported customer experience solutions, and IoT-based logistics applications. These initiatives generated TRY 170 million in operational efficiency savings across 2024 and 2025. At the same time, through training programs designed to enhance our employees’ digital competencies, we advanced our corporate transformation together with our people.

One of the most exciting developments of 2025 was our strategic step into the entrepreneurship ecosystem. With the establishment of the “Rota Portföy Yönetimi A.Ş. D-Venture Fund of Funds Venture Capital Investment Fund”, approved by the Capital Markets Board of Türkiye, we began investing in innovative ventures focused on mobility technologies, connected vehicle solutions, artificial intelligence, smart logistics, and sustainability. We regard this initiative not merely as a financial investment but as a strategic positioning that enables early access to the mobility ecosystem of the future.

Committed to our carbon-neutral goal

Adopting sustainability as a business model, our company continued to set an example for the sector in 2025. We raised our vision of transparency by becoming one of the pioneering companies in Türkiye to publish a report compliant with the Turkish Sustainability Reporting Standards (TSRS). Through our energy efficiency initiatives, renewable energy investments, and sustainability practices spanning our entire value chain, we further reinforced our vision of a low-carbon business model.

At our Şekerpınar Logistics Center, our on-site solar power plant generated 4,337 MWh of electricity, meeting 77% of the facility’s electricity needs. We are firmly progressing toward our 2030 targets of reducing our carbon footprint by 30% and transitioning to 100% renewable electricity consumption. The fact that 68% of our suppliers now meet sustainability criteria clearly demonstrates that this transformation extends throughout our value chain. Through our electrification investments, expansion of charging infrastructure, and emission reduction targets, we regard contributing to the transition toward climate-friendly mobility as a core responsibility.

Social value and sustainable impact

We measure our success not only by financial statements but also by the value we contribute to society. Our “Trafik Hayattır!” (Traffic is Life!) platform marked its 21st year, reaching thousands of individuals to raise traffic safety awareness. Through our “Safe Traffic Skills” project, implemented in collaboration with Tohum Autism Foundation, we developed specialized educational kits and accelerated teacher training to enhance traffic safety for individuals with autism.

Through our flagship biodiversity initiative, “Doğaya Kanat Açtık” (We Spread Our Wings to Nature), we have traveled more than 60,000 kilometers and documented 395 bird species and 30 mammal species across Türkiye - reaffirming our commitment to protecting natural life and leaving a more livable world for future generations.

An organization growing through shared values

The greatest driving force behind our achievements is our workforce of more than 2,000 dedicated colleagues who believe in one another and say, “We achieved this together”. In 2025, we maintained our focus on employee engagement, inclusivity, and talent development. We increased our employee engagement rate to 84%. In line with our principle of equal opportunity, we raised the ratio of female employees to 33.3% and female managers to 35.8%.

To equip our workforce with future skills, we conducted over 37,800 hours of training in a single year. Our investments in leadership programs and digital competencies support the development of our people with a holistic approach. Through our employee volunteering programs and social impact platforms, we further integrated our corporate culture with social benefit. Our culture of collective wisdom and agile management further strengthens Doğuş Otomotiv as a resilient and adaptable organization, capable of responding effectively to every form of change.

Electrification-focused growth and a model rollout

In 2026, we expect balanced growth to continue in the automotive market, supported by a more predictable global financial environment, strengthening consumer confidence, and the accelerating transition to electric vehicles. For us, 2026 will be a year of electrification-focused growth and an extensive model rollout. Alongside new launches, we will further expand our charging infrastructure and reinforce our leadership in mobility services.

With our strong financial structure, extensive Authorized Dealer and Service network, digital and mobility-focused investments, and the competitive advantage of our multi-brand business model, we will continue to execute our sustainable growth strategy with determination. Our ambition goes beyond preserving the strength of the brands we represent; we aim to be one of the companies shaping the future of mobility in Türkiye.

I would like to extend my sincere gratitude to our main shareholder, Doğuş Group, whose vision guides us; to our longstanding partner Volkswagen AG, with whom we have built a partnership approaching half a century; to our devoted Authorized Dealer and Service network across Türkiye; to our employees; and to all stakeholders who place their trust in us.

With our determination and vision for the future, we will continue to carry forward the legacy entrusted to us in the best possible way.

Sincerely,

Emir Ali Bilaloğlu
Chairman of the Board of Directors and the Executive Board