Cupra Tavascan avoids EU tariffs, even though it’s made in China

The Chinese-built Cupra Tavascan will be able to be sold in Europe without incurring import tariffs thanks to a deal between Volkswagen Group and the EU, which could also pave the way for similar agreements with MINI, Smart and Volvo.

Cupra’s all-electric SUV is a sister model to the Volkswagen ID.5 and is manufactured in partnership with the Chinese JAC Group at its plant in Hefei, China. Rules relating to Chinese-built electric cars mean the Tavascan has until now been subject to a 20.7 per cent ‘countervailing duty’ over and above the standard 10 per cent import tariff in an effort to counterbalance the subsidies manufacturers in China receive from Beijing.

However, last December, Auto Express broke the story that Volkswagen Group was pursuing a deal with the EU that would see the additional duties revoked for its foreign-made models.

“I would like to call on the European Union to reconsider the tariffs on the Cupra Tavascan,” said Salvador Illa I Roca at the official opening of Cupra’s battery plant in Barcelona at the time. “We are hearing positive news. The Catalonia government stands ready to work alongside the Spanish government [to remove] an unfair tariff that penalises strategic investments.”

Now, the EU has approved VW Group’s request on the proviso that it adheres to an import quota and sells the model at a predefined minimum price; the Cupra Tavascan now starts from 45,420 Euros (just under £40,000 at today’s exchange rate) in Spain, which is around 1,400 Euros more than in December 2025. In the UK, the electric coupe-SUV is even pricier at £47,350, despite also incurring only a 10 per cent import tariff.

The Tavascan V1 has a 77kWh battery and travels up to 337 miles on a full charge. With a 282bhp motor driving the rear wheels, the coupe-SUV despatches the 0-62mph sprint in 6.8 seconds. 

According to statement by the EU, VW’s minimum pricing model “would not be injurious to EU industry,” and the organisation recognises that the automotive giant is “also committed to investing in significant BEV-related projects in the EU with clearly defined milestones, supporting the EU’s industrial strategy and incentivising compliance with EU climate transition goals.”

How could this play out for MINI and other brands? 

A host of European brands, including Dacia, Polestar, Volvo and Lotus, make cars in China and import them to Europe. But the EU would have to assess each case individually, because different circumstances apply to each manufacturer and Chinese ownership could potentially muddy the waters. 

MINI is a case with huge significance for the UK. Auto Express revealed last February that the BMW-owned brand has paused plans to put the MINI Electric hatch into Plant Oxford. This hiatus could be extended if the brand wins an EU reprieve and is able to boost its margins on Chinese imports – subject to a potentially adverse quota restriction. 

Although MINI is owned by BMW, the electric MINI Cooper and Aceman are built in China by Spotlight Automotive, a 50:50 joint venture between the Germans and China’s Great Wall Motors. It’s unclear how the EU would assess the origin of the MINI – which is also subject to an additional 20.7 per cent duty – for a relaxation of tariffs; MINI refused to comment for this story.

Geely-owned Volvo has installed production of its MINI rival, the EX30, into its plant in Ghent, Belgium, to circumvent tariffs. And Dacia will employ a similar strategy for the new-generation Spring EV, relocating its manufacture from Wuhan in China to Slovenia for 2026.

Other Chinese imports include the Volvo ES90, Polestar 5 and Lotus Emeya and Eletre, all from brands owned by Geely. This Chinese giant also has a 50:50 joint venture (JV) with Mercedes, to manufacture the electric Smart model range in Xi’an.

Why did the Cupra Tavascan end up being built in Anhui?

Volkswagen Group says its European industrial footprint was simply not able to accommodate the Tavascan, leading to its installation in China where it’s assembled in a JV with JAC Motors. A version of the Tavascan is sold as the ID.UNYX in China.    

“Producing it in China was maybe our only opportunity to get this car,” Cupra CEO Markus Haupt told Auto Express in an exclusive Barcelona meeting. “We went for it, because when we took the decision, there were no tariff discussions at that moment, and it was a profitable business case. But [then] we had some surprises.”

Could production be moved back to Europe? “We [already] invested the money there and reinvesting in the same product is probably not the best solution,” concluded the boss. 

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