Gasgoo Munich- On February 10, the European Commission accepted a price undertaking proposal submitted by Volkswagen Anhui. This marks the first corporate case approved since China and the EU reached a framework consensus on an EV export price undertaking mechanism in January, and since European authorities released their guidance documents.
Cupra Tavascan: Image Source: Cupra
Following approval, the CUPRA Tavascan built by Volkswagen Anhui will enter the European market via a set minimum import price and annual export quota, exempting it from the previously applicable 20.7% countervailing duty. The Commission noted that the proposal was jointly submitted by Volkswagen and its Spanish affiliate SEAT, adding that its assessment found the price floor would not harm the EU industry. Beyond price and volume caps, Volkswagen has also committed to a series of pure EV investment projects in Europe, with clear phased targets.
Designed and developed in Europe but manufactured in China, the CUPRA Tavascan is a cornerstone of Volkswagen's electrification strategy. Weighed down by tariffs and development costs, the SEAT/CUPRA division saw operating profit for the first three quarters of 2025 plummet 96.2% year-on-year to 16 million euros.
On February 12, Ministry of Commerce spokesperson He Yadong addressed the issue at a regular press briefing. He noted that China and the EU had previously achieved a "soft landing" on the EV dispute within the WTO framework, adding that Brussels has issued guidance documents following consultations and pledged to conduct objective assessments based on non-discriminatory principles. He expressed hope that more Chinese companies will reach agreements with the EU on price undertakings, emphasizing Beijing's willingness to maintain dialogue.
Since the EU launched its anti-subsidy investigation in 2024, Chinese-made EV exports have faced combined tariffs exceeding 30%. The approval of the Volkswagen Anhui case signals the substantive opening of a channel for case-by-case negotiations. According to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, several Chinese automakers are currently evaluating whether to submit similar applications.
