- EU exempts Cupra Tavascan from tariffs with conditions
- Agreement includes minimum pricing and quota model
- Details withheld, despite protest from Chinese industry
FRANKFURT, Feb 10 (Reuters) - 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.
The fully electric Tavascan has been subject to an extra 20.7% tariff on top of an existing 10% duty since the EU imposed fresh duties on Chinese-made electric vehicles (EVs) in 2024.
Under European Union rules, carmakers can negotiate tariff exemptions for individual electric models imported from China.
"The undertaking includes an annual import quota and a minimum import price," a spokesperson for the SEAT/Cupra division said on Tuesday in an emailed statement to Reuters, without giving further details of what is the first such undertaking accepted by the EU.
China's Chamber of Commerce said in a statement in response that Chinese EV makers are considering whether to submit their own price undertaking proposals, adding it hoped the EU would treat Chinese companies on an equal footing.
"Given that Chinese companies’ exports to the EU are often more complex and involve multiple models and business structures, we encourage the Commission to maintain close and constructive communication with companies to ensure that the arrangements are practical and predictable," it said.
The Commission's decision was dated Monday and appeared in the EU's official journal on Tuesday.
It said Volkswagen had agreed to commitments related to EV investment projects in the EU in its effort to secure the tariff exemption, without giving further details.
It also withheld details on the agreed quota and minimum price for the model, which it said was confidential, despite a request for details from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME).
The CCCME had criticised the Commission for engaging in bilateral discussions with individual enterprises, an EU document seen by Reuters showed.
Volkswagen's SEAT/Cupra division reported a 96% drop in operating profit to 16 million euros ($18.9 million) in the first nine months of 2025, hit by tariffs on the Tavascan model.
Deliveries of the Cupra Tavascan, which entered the market in late 2024, stood at 36,000 last year, accounting for around 11% of Cupra's total deliveries.
Reporting by Christoph Steitz in Frankfurt, Philip Blenkinsop in Brussels and Rachel More in Berlin, Editing by Friederike Heine, Madeline Chambers and Alexander Smith
Source: Reuters