China's electric car makers have been given the go-ahead to negotiate tariff exemptions with the EU
An electric Cupra Tavascan car produced by Volkswagen, displayed at a showroom, PHOTO: IMAGO / Imago Stock and People / Profimedia Images
Beijing's Ministry of Commerce said on Thursday it had changed its position and accepted that Chinese electric vehicle makers could negotiate independently with the European Union after Volkswagen secured an exemption from customs duties on one of its SUV models made in China, Reuters reports.
The European Commission, which coordinates the trade policy of the bloc of 27 member states, approved an application for the Cupra brand this week. It belongs to Wolkswagen, and the Commission's approval means the Tavascan SUV coupe will be able to be imported into the EU from factories in China duty-free.
The EU executive agreed in exchange for an agreed minimum price and after Volkswagen accepted a maximum sales ceiling for the Cupra Tavascan model. This was the first exemption from the EU since the adoption of these tariffs on electric car imports from China in 2024.
New China-EU negotiations on electric car imports
Beijing resumed negotiations with the European Commission last December and urged the bloc not to hold separate talks with Chinese manufacturers, despite EU rules allowing carmakers to request exemptions from customs duties for certain electric models made in China.
“It is hoped that more Chinese companies will reach agreements with the European side on price commitments,” He Yadong, a spokesman for the Ministry of Commerce in Beijing, told a news conference.
According to him, China is willing to maintain communication with the EU and “both sides support Chinese electric vehicle manufacturers to make effective use of the price commitment mechanism.”
Auto industry analysts welcomed the waiver received by Volkswagen, but pointed out that approvals for other automakers are likely to take time, as they appear to be handled on a case-by-case basis for each model.
The all-electric Tavascan model was subject to an additional customs duty of 20.7%, on top of the basic rate of 10%.
