Volkswagen looks at building cars in Türkiye again after six years

Doğuş Otomotiv, Volkswagen’s long-standing distributor in Türkiye, said on Friday, 30 October, that it had signed a letter of intent with Volkswagen Group companies to explore building Volkswagen passenger cars in the country. The announcement came in a filing to Türkiye’s Public Disclosure Platform, known as KAP.

The letter is an early step, not a deal to build a factory. No final investment decision has been made, and no location, production capacity, timetable or investment figure has been announced.

It is still a notable return. Volkswagen chose Manisa for a car plant in 2019 but shelved the plan in 2020, citing the COVID-19 pandemic and global economic developments. Since then, its passenger cars sold in Türkiye have been imported.

Doğuş said the partnership aimed to offer value-added products suited to new technologies and to support growth in Türkiye’s automotive industry. Investors reacted quickly: Doğuş shares rose 10% in morning trade on Friday, their largest one-day rise since May 2025, according to Reuters. Ata Yatırım analyst Cemal Demirtas said a serious production partnership could have a significant long-term impact on Doğuş.

Why it matters

Türkiye already builds cars and vans for Europe, with factories run by Renault, Stellantis, Toyota, Hyundai and Ford, and cars are the country’s leading export sector. Adding Volkswagen would bring another high-volume brand into that industry.

The talks also come as Volkswagen is trying to cut costs and reduce excess production capacity. A Turkish plant could give it a lower-cost base close to Europe, although nothing has been agreed yet.

There are also unconfirmed reports about how the plan might work. German trade reports said models developed in China could be assembled in Türkiye for export to markets including Africa, South America and Southeast Asia. Volkswagen has not confirmed those details.

What happens next

The next step is a feasibility study. Doğuş must inform investors through KAP if the talks lead to a binding agreement or if material details, such as the location, capacity or start date, are decided. Until then, the letter signals intent rather than a confirmed plant.

This article is for general information and education only. It is not legal or financial advice.

Sources

• https://www.globalbankingandfinance.com/volkswagen-dogus-otomotiv-sign-letter-intent-explore-car/ (Reuters, 30 October 2026)
• https://www.europesays.com/turkiye/67478/ (EuropeSays, 31 October 2026)
• https://icwwm.com/volkswagen-production-in-turkiye-dogus-letter-of-intent/ (ICWWM, 30 October 2026)