The European Commission is considering a Volkswagen proposal that could allow electric vehicles made in China to avoid the EU's 20.7% anti-subsidy duty through an annual import quota and a minimum price mechanism, Reuters reports. This plan is crucial for SEAT/CUPRA, whose Tavascan electric car, manufactured at the Volkswagen joint venture in Anhui, is under serious threat under current customs regulations.
Volkswagen Anhui and SEAT say they have worked intensively to ensure that the offer meets all regulatory requirements, although details remain unknown. If the proposal is approved, an exemption from the fee can be granted within a few months.
The review comes at a time when the EU is evaluating alternatives to duties, such as minimum import prices to be enforced, as part of a broader dialogue with China that began in April. Brussels argues that any tariff change should provide equivalent protection against subsidized imports. Volkswagen's proposal highlights the growing pressure on European automakers, which rely on Chinese manufacturing to remain competitive in the electric vehicle market while overcoming escalating trade measures.
