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The E.U.’s new automotive package, which excludes Turkish-made vehicles and components from the "Made in E.U." label, could undermine the decades-long Customs Union partnership and disrupt the export-driven competitiveness of Türkiye’s automotive sector, a top industry official has warned.
Cengiz Eroldu, Chairman of the Automotive Manufacturers Association of Türkiye (OSD), emphasized that the recognition of Türkiye as an equal partner in the E.U. automotive ecosystem is a strategic necessity. "If vehicles and parts manufactured in Türkiye are excluded from the proposed definition, it will nullify the mutual advantages brought by the Customs Union and render its structure ineffective," Eroldu stated.
The European Commission recently introduced a comprehensive package outlining new measures for the green transition in the automotive sector, including a proposal to remove the previously planned 2035 ban on combustion engine cars and to revise the targets for electric vehicle adoption.
The package also includes administrative simplifications, battery production support, and financial incentives for the production of small electric vehicles within the E.U. A key element of the policy is the prioritization of products bearing the "Made in E.U." label. While this designation serves a protectionist function by channeling incentives to domestically manufactured goods, it poses a considerable threat to Türkiye’s automotive exports, according to OSD.
Türkiye’s automotive industry accounts for 17% of the country’s total exports, reaching $37.2 billion in 2024, and more than 60% of those shipments go to E.U. markets, totaling $25.3 billion.
Eroldu pointed to the European Commission’s intention to grant financial incentives specifically to low- or zero-emission corporate fleet vehicles manufactured within the EU. According to the Commission’s current roadmap, the "Made in E.U." definition is expected to be opened for consultation on January 28, 2026.
OSD fears that if Türkiye is not explicitly included in the scope of this definition, it will be left out of incentive mechanisms, adversely affecting competitiveness.
Türkiye’s deep integration with E.U. automotive supply chains, reinforced over nearly three decades under the Customs Union, has placed the country as the E.U.’s second-largest vehicle supplier and third in vehicle exports, Eroldu recalled, adding that the relationship extends beyond finished vehicles to a balanced and high-volume trade in automotive components.
"Given the strong integration of supply chains and trade ties, the policies announced by the E.U. have direct consequences for Türkiye’s economy and automotive sector," he said.
Eroldu reiterated that Türkiye’s status as a Customs Union partner should warrant equal treatment in the E.U.’s regulatory framework. He called on Brussels to include Türkiye in the "Made in E.U." classification to ensure its continued participation in incentive mechanisms and safeguard the competitive balance between the Turkish and European automotive industries.
"It is of utmost importance that Türkiye is evaluated on equal terms with E.U. countries under the ‘Made in E.U.’ label. Including Türkiye in this definition is a strategic requirement for preserving competitiveness across both the Turkish and European automotive sectors," Eroldu stressed.
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