China Endorses EU EV Price Undertakings After Cupra Tavascan Secures Tariff Relief

Overview

• On 10 February, the European Commission approved Volkswagen Anhui’s request to lift the 20.7% countervailing duty on the China-built Cupra Tavascan, with the 10% base import tariff still in place.
• The exemption hinges on a confidential minimum import price, a model-specific sales quota, and commitments to BEV and battery-related investments in the EU with defined milestones.
• On 12 February, Ministry of Commerce spokesperson He Yadong said Chinese automakers may pursue individual talks with Brussels and encouraged companies to reach price-commitment agreements.
• China’s industry chambers said several manufacturers are evaluating submissions and urged fair, transparent, non-discriminatory implementation, while the EU has kept the Tavascan’s minimum price and quota undisclosed despite requests.
• The Commission’s January guidance allows individual or joint undertakings with simple sales-channel structures and possible EU investment pledges, as automakers weigh paying tiered duties (Tesla 7.8%, BYD 17%, Geely 18.8%, SAIC up to 35.3%), negotiating undertakings, or shifting production to Europe.