US EditionVW's Cupra Tavascan Spared From EU Duties on China-Made EVs
The tariff exemption requires Volkswagen to meet sales quotas, minimum pricing, and EV investment commitments to protect the EU auto market from cheap Chinese imports.
- On a request from Volkswagen's Cupra brand, the European Commission in Brussels this week approved exempting the China-made Tavascan SUV coupe from tariffs in exchange for a minimum price and sales quota.
- Facing an extra 20.7% tariff, Volkswagen's SEAT/Cupra division nearly lost profit, prompting it to start proposals with the EU before the guidelines last month.
- Analysts noted the industry shift, with Eugene Hsiao saying `We see this as positive for both Chinese and foreign EV makers in China in order to leverage the efficient cost basis locally`, while the China Chamber of Commerce to the EU held a meeting last month, two people said.
- Industry insiders said major Chinese automakers will likely seek similar exemptions now that Volkswagen secured a breakthrough tariff reprieve, while Brussels framed it as protecting European carmakers from cheap imports.
- With tariffs of up to 35.3%, China warned of a French wines probe while data showed China's January car sales fell fastest in nearly two years, highlighting pressures on the European market.
17 Articles
17 Articles
The China Chamber of Commerce before the EU has called for fair treatment for its country’s automotive companies after the European Commission authorized Volkswagen and Seat to import the Chinese produced Cupra Tavascan without additional tariffs. The decision has provoked an immediate business reaction from Beijing. The body demands that Brussels apply principles of justice, transparency and non-discrimination in price commitments, while Chines…
The Cupra Tavascan from the VW Group was planned as an export model and became a victim of trade policy. The EU is now lifting the fines – and setting a precedent.
Caixin Global
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VW China Venture Secures First EU Tariff Exemption With EV Price Pledge - The Volkswagen joint venture agrees to minimum prices, volume caps, and local investments to bypass anti-subsidy duties
VW's Cupra Tavascan spared from EU duties on China-made EVs
The European Commission has approved a request by Volkswagen's Cupra brand to free its Tavascan SUV coupe, which is made in China, from import tariffs in exchange for a minimum price and quota model, following months of intense discussions.
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