EU “Made in Europe” Rule Raises Risks for Türkiye
EU Auto Quota Proposal Raises Concerns for Türkiye Supply Chains
A new European Union proposal aimed at strengthening domestic car production is raising concerns in Türkiye’s automotive sector. Major European automakers are pushing for stricter “Made in Europe” rules that could significantly affect long-established supply chains between Türkiye and the EU.
What the Proposal Includes
Leading car manufacturers including Volkswagen, Renault, and Stellantis are lobbying for new regulations requiring at least 70% of a vehicle’s value to be generated within EU member states in order to qualify under the “Made in Europe” label.
The initiative is part of the EU’s planned Industrial Accelerator Act, designed to protect Europe’s industrial base from increasing global competition.
If adopted, countries outside the EU, including Türkiye, could be limited to only 30% of a vehicle’s total production value.
Why Türkiye Is Concerned
According to Mehmet Ali Yalçındağ, coordinating chair of the Foreign Economic Relations Board (DEİK), such restrictions could disrupt over 30 years of deeply integrated automotive cooperation between Türkiye and Europe.
Türkiye has become a critical manufacturing hub within Europe’s automotive ecosystem thanks to the long-standing Customs Union agreement and strong industrial ties.
Treating Türkiye as an ordinary third country could damage existing business models and reduce production efficiency across the region.
Türkiye’s Strategic Role in European Production
Türkiye plays a major role in vehicle manufacturing for Europe. Notably, around half of all buses operating on European roads are produced in Türkiye.
This gives the country strategic importance as a high-quality and cost-efficient production center for European manufacturers.
Including Türkiye in the “Made in Europe” framework could help preserve efficient supply chains while lowering production costs for EU manufacturers.
Broader Economic Impact
The debate extends beyond automobiles. Türkiye and Europe maintain strong cooperation in sectors such as energy, defense, digitalization, supply chains, and green transition projects.
Industry representatives warn that excluding Türkiye from future industrial frameworks could slow progress in these strategically important sectors.
The outcome of the EU proposal could reshape automotive production and trade relations between Türkiye and Europe for years to come.
