The European Union’s new automotive package, which excludes Turkish-made vehicles and components from the “Made in EU” label, could undermine the decades-long Customs Union partnership and disrupt the export-driven competitiveness of Türkiye’s automotive industry, a top sector representative has warned.
Cengiz Eroldu, Chairman of the Automotive Manufacturers Association of Türkiye (OSD), emphasized that recognizing Türkiye as an equal partner in the EU’s automotive ecosystem is a strategic necessity.
“If vehicles and parts manufactured in Türkiye are excluded from the proposed definition, it would eliminate the mutual advantages created by the Customs Union and render its structure ineffective,” Eroldu said.
EU Introduces New Automotive Transition Package
The European Commission recently unveiled a comprehensive package aimed at accelerating the green transition in the automotive sector. The proposal includes plans to reconsider the previously announced 2035 ban on internal combustion engine vehicles and revise targets for electric vehicle adoption.
The package also introduces measures such as administrative simplifications, support for battery production, and financial incentives for the manufacturing of small electric vehicles within the EU.
“Made in EU” Label Raises Concerns
A key element of the policy is prioritizing products that carry the “Made in EU” label. While this designation aims to strengthen domestic manufacturing within the EU, it could pose a significant risk to Türkiye’s automotive exports, according to OSD.
Türkiye’s automotive sector accounts for 17% of the country’s total exports, reaching $37.2 billion in 2024. More than 60% of these exports are destined for EU markets, totaling $25.3 billion.
Risk of Being Excluded From Incentives
Eroldu also pointed out that the European Commission intends to provide financial incentives specifically for low- or zero-emission corporate fleet vehicles manufactured within the EU.
According to the Commission’s current roadmap, the definition of the “Made in EU” label is expected to be opened for public consultation on January 28, 2026.
OSD warns that if Türkiye is not explicitly included within this definition, the country may be excluded from incentive mechanisms, which could negatively impact the competitiveness of its automotive industry.
