Statement by the Ministry of Industry and Technology on the local content requirement in the automotive sector

In a written statement, the Ministry recalled that the “Motor Vehicle Local Content Ratio Declaration List,” announced by the Ministry, is taken as the basis for vehicle purchases by public institutions and citizens with disabilities.

The Ministry stated that, in order to ensure higher value-added domestic production, the Communiqué on Domestic Goods published on 25 January 2025 stipulated that, as of 1 January, local content ratios would be calculated in accordance with the provisions of the Communiqué. However, at the current stage, due to the large number of suppliers in the automotive sector and the high diversity of input products, it was noted that calculating local content ratio declarations for final vehicles within the scope of this regulation could potentially lead to disruptions in public procurement and vehicle purchases by citizens with disabilities.

Accordingly, following consultations with relevant public institutions and industry stakeholders, the Ministry reported that an amendment to the Communiqué on Domestic Goods was introduced on 7 February. With this amendment, the provision stating that “the provisions of this Communiqué shall not apply to the calculation of the local content ratio of final products in the automotive sector until 1 July” was added. It was emphasized that this arrangement also ensures that the continuity of production of automotive manufacturers producing at their facilities in Türkiye is not disrupted.

The statement underlined that the exemption, which will remain in effect until 1 July, applies solely to final products in the automotive sector. In this context, all domestic suppliers of final products, namely motor vehicles, are required to complete the necessary procedures to obtain a domestic goods certificate or a local content ratio report in accordance with the provisions of the Communiqué.

The Ministry also announced that, until 1 July, the local content ratios of motor vehicles produced in Türkiye will be calculated within the framework set out in the “Guidance Document on Local Content Ratios for Final Products in the Automotive Sector,” which will be published.