Türkiye should be included in the European Commission's upcoming "Made in EU" automotive regulations to avoid risks to investment and exports, the head of the country's automotive industry association said on Monday, calling the issue a strategic necessity for the sector and the broader economy.
The statement comes as the European Union recalibrates its transition to electric vehicles. Last week, the bloc dropped the effective ban on new combustion-engine cars from 2035, shifting from a 100% emissions reduction target to a 90% goal. Under the new proposal, manufacturers can offset the remaining emissions by using low-carbon "green steel" produced within the union.
The revision marks the bloc's biggest retreat from its green policies in recent years and came after pressure from the region's auto sector.
Cengiz Eroldu, chair of the Automotive Manufacturers Association (OSD), said the European Commission's work on a "Made in EU" classification could pose significant risks for Türkiye unless the country is explicitly included.
Türkiye's automotive industry has production capacity exceeding 2 million vehicles and produced around 1.4 million units over the past 12 months, with more than 60% of exports going to the EU under the customs union framework, according to OSD data.
The sector generates close to $40 billion in annual export revenues, accounting for roughly one-sixth of Türkiye's total exports.
Under last week's proposal, EU targets would shift to a 90% cut in CO2 emissions from 2021 levels, instead of the current rules that all new cars and vans from 2035 have zero emissions.
Automakers would need to offset the remaining emissions by using lower-carbon steel made in the EU and synthetic e-fuels or non-food biofuels such as agricultural waste and used cooking oil. The plan also gives automakers a three-year window from 2030 to 2032 to cut car CO2 emissions by 55% from 2021 levels, while the 2030 target for vans would be eased to 40% from 50%.
Eroldu said the commission was also expected to introduce special financial incentives for vehicles classified as "Made in the EU," raising concerns for manufacturers operating outside the bloc.
"It is of vital importance for our country's economy that Türkiye is also included in this definition, which poses a great risk to our country's investment environment and existing investments," he noted.
"Given Türkiye's status as a customs union partner, being treated on equal terms with the EU under the 'Made in EU' practices and not being excluded from incentive mechanisms is critically important," said Eroldu, calling inclusion a "strategic necessity."
OSD said the European Commission plans to open the proposed "Made in EU" definition for consultation on Jan. 28.
