The joint venture of automotive giant Stellantis and Türkiye's Koç Holding, Tofaş, announced on Monday it aims to produce 1 million vehicles between 2024 and 2032 with a total investment of 232 million euros (nearly $250 million) under the agreement signed with Stellantis last year.

In the announcement on the Public Disclosure Platform (KAP), the company recalled it inked a production agreement with Stellantis Europe S.P.A. on March 1, 2023.

"As part of our special announcement on March 1, 2023, a production agreement has been signed between our company and Stellantis Europe to grant Tofaş the right to produce the new 'K0' model light commercial vehicles and 'Combi' versions with multiple energy platforms in Türkiye under a Stellantis license for the Stellantis brands (FIAT, Opel, Citroen, Peugeot), and to set the sales conditions for the vehicles and spare parts produced, as well as a license agreement for the use of intellectual and industrial property rights belonging to the Stellanits Group."

Stellantis was formed in 2021 through the merger of France’s PSA and Fiat Chrysler, having under its umbrella brands from Fiat and Opel to Jeep and Maserati.

The statement by Tofaş reported that, in line with the agreement, a project will be implemented with an investment reaching 232 million euros, most of which will be completed this year, aiming to produce 1 million vehicles during the 2024-2032 period.

It was stated that Tofaş has been granted distribution rights in Türkiye for the vehicles produced for the Fiat brand and that "in the event that Stellantis Otomotiv shares are acquired by our company, the distribution rights for other Stellantis brands (Peugeot, Citroen, Opel) in Türkiye will also be transferred to Tofaş."