Volkswagen may weigh Türkiye assembly plan for China-built models

Taylan Özgür Dil- ISTANBUL

A view of the Volkswagen plant in Zwickau, Germany, Thursday, July 9, 2026. (dpa via AP, File)

Volkswagen is evaluating plans to assemble vehicles in Türkiye through a partnership with Turkish distributor Doğuş Otomotiv, reviving discussions of local production years after the German automaker abandoned an earlier manufacturing project in the country.

The two companies signed a letter of intent, with attention now focused on how production would be structured and which models could be included. The announcement coincides with a period in which Volkswagen is reshaping its global manufacturing network amid financial pressures, while uncertainty remains over whether Türkiye will be included in the European Union’s “Made in Europe” framework.

A Volkswagen spokesperson told German automotive publication Automobil Produktion that the company is considering supplying semi-knocked-down (SKD) vehicles from production facilities outside Europe for the Turkish market through cooperation with Doğuş Otomotiv. Meanwhile, German publication Automobilwoche reported that vehicle parts produced by Volkswagen’s Chinese partner FAW could be shipped to Türkiye and assembled locally using the completely knocked-down (CKD) method.

Industry assessments suggest that models developed and produced in China are the most likely candidates for Turkish assembly, particularly as Volkswagen expands exports from China to markets in Asia and the Middle East. In this context, the strongest contenders are the Magotan sedan, marketed as the Passat in China and the Sagitar, the Chinese version of the Jetta.

Volkswagen began exporting the FAW-produced Magotan and Sagitar models to the Middle East in September 2025. Both vehicles had previously enjoyed strong sales in Türkiye before being withdrawn from European markets.

The strategy aligns with Volkswagen’s broader China plans. In January 2026, the company said it would use China’s lower manufacturing costs to increase exports to Southeast Asia, the Middle East and South America, while excluding Europe from the initiative. The approach was reinforced in late October with the launch of its “In China, Beyond China” strategy, aimed at turning China into a global development and export hub.

Volkswagen could adopt a model similar to its semi-assembly operation in Uzbekistan for Türkiye. However, the long-term objective should be broader manufacturing involving local suppliers, advanced technologies and export-oriented production rather than a facility limited to assembling imported components.

If Türkiye is eventually included within the EU’s “Made in Europe” framework, a Turkish facility could become part of Volkswagen’s wider European production network. In that case, manufacturing could extend beyond the Magotan and Sagitar models to include additional Volkswagen Group vehicles produced in China for export markets.