Volkswagen is exploring a renewed opportunity to manufacture passenger cars in Türkiye through a potential partnership with its longstanding distribution partner Doğuş Otomotiv. The two companies have signed a letter of intent to examine local production, with vehicles developed for the Chinese market reportedly among the options under consideration.
According to Reuters, citing a statement from Doğuş Otomotiv, the agreement was announced on 30 October through Türkiye’s Public Disclosure Platform (KAP).
The proposed cooperation aims to bring higher-value vehicles incorporating new technologies to the Turkish market while supporting the development of the country’s automotive industry.
Neither company has disclosed specific details about the models being considered, potential investment requirements, production capacity or a possible start date.
Chinese-Developed Models Could Be Assembled Locally
According to Auto Motor und Sport, discussions include the possibility of assembling vehicles originally developed for the Chinese market using the Completely Knocked Down (CKD) method. Under this approach, vehicle components are shipped from existing production facilities and assembled at the destination.
Models reportedly being considered include the Magotan, a Passat variant produced by the FAW-Volkswagen joint venture in China, as well as vehicles from the Jetta and Audi brands.
Volkswagen has confirmed to Turkish media that it is examining the possibility of exporting partially assembled vehicles from production sites outside Europe to Türkiye in cooperation with Doğuş Otomotiv. The vehicles would be intended for the local market.
Whether electric vehicles could form part of the potential production programme remains unclear.
Volkswagen Expands Its International Use of Chinese Technologies
The discussions in Türkiye are consistent with Volkswagen’s broader strategy to deploy vehicles and technologies developed in China in additional international markets.
At a technology event in Hefei in late October, the group presented its approach under the motto “In China, Beyond China”. The strategy positions China not only as a market for domestic vehicle sales but also as a development and export base serving other regions.
Volkswagen already exports China-produced vehicles to markets in the Middle East, Uzbekistan, Kazakhstan and parts of Sub-Saharan Africa. Mexico, Egypt and Vietnam are among the additional markets expected to receive such vehicles by the end of 2026.
The group also intends to expand the international use of Chinese-developed vehicle platforms and electronic architectures. From 2030, the China Main Platform (CMP) and China Electronic Architecture (CEA) are expected to provide technical foundations for locally developed model ranges in South America.
It remains uncertain whether potential assembly operations in Türkiye would become part of this wider internationalisation strategy. However, importing vehicle kits for local assembly could allow Volkswagen to use existing production infrastructure outside the country.
Investment Constraints Shape Volkswagen’s Decisions
The renewed production discussions come as Volkswagen is placing greater emphasis on investment discipline amid financial pressure.
At the end of October, the group announced a temporary suspension of development work on the electric ID.Golf, citing high costs. Net cash flow at Brand Group Core fell from €4.34 billion to €1.43 billion during the first nine months of 2026.
Volkswagen has indicated that it intends to control investment more tightly and reduce development expenditure. Whether the potential assembly project in Türkiye is connected to these cost-saving efforts has not been disclosed.
Previous Türkiye Plant Project Abandoned in 2020
Volkswagen has considered Türkiye as a production location before. In 2019, the group planned to establish a manufacturing plant in Manisa, with the Volkswagen Passat and Škoda Superb among the models intended for production.
The proposed investment was approximately €1.3 billion, with planned annual production capacity of up to 300,000 vehicles.
However, Volkswagen abandoned the project in 2020, citing the COVID-19 pandemic and changing global economic conditions. The group instead continued investing in existing production facilities in Europe, including its operations in Slovakia.
Doğuş Otomotiv has been Volkswagen’s distribution partner in Türkiye for more than 30 years. Their cooperation has also expanded into additional markets, including Iraq, Azerbaijan and Syria.
No final decision has been made on whether vehicle production will proceed in Türkiye. The companies have also yet to clarify whether any future assembly operations would exclusively serve the domestic market or potentially support exports to other countries.