Koc group is %7 of Turkey's GDP for a reason. They are classical rational capitalists. Minimum risk maximum profit is their way to go, no different than basicly every global giants.
If you ask Koc group to design and produce a 1500hp military powerpack they will not accept it with so little funding cause it is too risky for them when they have nowhere near such capabilities, they will not pursue such adventure most they had before this 700hp is 150-500hp engines. They did not produce 480hp for 40 years ago for example but they did in early 2000's with their own resources.
They will design&produce 700hp, 1000hp etc as the time goes cause they have their r&d planning and timing. They are not gonna listen to goverments requests and stuff, they have their agenda&plans and such that they will follow, that is how they stayed at top for 70 years. If TAF does not buy Arma2, it is not a big problem for them, they made their plans for export probably.
Also people that say they are not innovative or such is just clueless lol they invest immense amount of funding for r&d but on the projects they see most profitable and least risky and they are most capable. For only ecotorq they have invested more than 100m$. The reason they produce military engine now cause they had produced civilian one already, so it is little risk with max profit.
Why would a privately held company randomly start 1500hp engine when the most they have is 700hp on top that %20 of their company publicly owned which would not take this risky endevaour gladly. BMC is trying to produce batu powerpack cause they are literally pro-Erdogan group and they expect Erdogan will cover their loss in other sectors do you think Tosyalı is so happy cause he is in this shit, he is gonna lose a lot of money and might even totally fail. Koc is not pro-Erdogan or pro this and that. That's why they are on top for 70 years regardless of who rules the country. It is good they keep their capitalist rational mentality if they change it and follow random forum users mentality they will probably go bankrupt in 10 years lol or become a totally corrupt company that ask benefits from goverment.