The Ministry of Industry and Technology has implemented a critical regulation to prevent disruptions in the production and supply chain of the automotive sector. Considering the complex nature of the sector, the transition period for calculating the Domestic Contribution Rate, which is used for public procurement and vehicle purchases by disabled citizens, has been extended. According to the new decision, strict regulations will not apply to final vehicles until July 1, 2026.
A significant update has been made to the calculation of domestic content ratios in the automotive sector, one of Türkiye's leading industries. The Ministry of Industry and Technology shared the details of the amendment to the "Domestic Goods Regulation" in a public announcement dated February 8, 2026. This decision particularly affects public institutions and disabled citizens who purchase vehicles exempt from Special Consumption Tax (ÖTV).
Why were the changes made? Supply Chain Risk.
With the aim of increasing the added value of domestic production, the Ministry had stipulated in a communiqué published in 2025 that domestic contribution rates would be calculated according to new and stricter regulations starting from January 1, 2026.
However, the complex structure of the automotive industry, consisting of thousands of parts and hundreds of suppliers, created a bottleneck in this transition. The ministry's statement indicated that due to the large number of suppliers and the diversity of product inputs, the current calculation method could potentially lead to cuts in public procurement and vehicle purchases for disabled citizens.
So, even if production at the factories stopped, documenting the domestic status of the vehicles would become difficult due to bureaucratic calculation processes, and sales would be stalled.
Flexible period until July 1, 2026.
Following consultations with industry stakeholders, an interim solution was developed to ensure that production and sales do not stop. The following clause was added to the regulation:
“"The provisions of this communiqué shall not apply to the calculation of the domestic content ratio of the final product for the automotive sector until July 1, 2026."”
This decision gives automotive factories a six-month breathing space. Until then, localization rates will be calculated according to the Automotive Sector Final Product Domestic Contribution Rate Guidance Document to be published by the Ministry.
Suppliers warned against complacency.
The ministry emphasized that this postponement only applies to the final product, i.e., vehicles that will be on the road. The process continues for the subcontractors and suppliers who provide parts to vehicle manufacturers.
The announcement stated, “"All domestic suppliers of motor vehicles, which are the final product, are required to take the necessary steps to obtain a domestic product certificate or a domestic content ratio report in accordance with the provisions of the Domestic Product Circular No. SGM-2024/10."” It was emphasized that the goal of localization was not compromised.
This regulation both prevented the factories' production lines from shutting down and temporarily eased the bureaucratic obstacles preventing citizens from accessing domestically produced vehicles.
