Europe to relax tariffs on Cupra Tavascan. Could MINI be next?

Cupra’s Chinese-built, all-electric Tavascan is heading for a relaxation of its EU import tariff, which could pave the way for MINI, Smart, Volvo and other European car brands to get a cut in duty too. 

The EU’s policy of adding a 20.7 per cent ‘countervailing duty’ on top of the standard 10 per cent tariff for the Chinese-made EV has come under fire from the president of Catalonia’s government.

“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 Catalonia’s capital city, Barcelona. “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.”

Cupra has lobbied for an end to the 20.7 per cent surcharge, in return for the Spanish brand adhering to an annual import quota and a minimum import price. Tavascan prices start from 44,010 Euros in Spain, compared with a £47,350 entry price in the UK; here the car is only subject to a 10 per cent duty for its Chinese origin.

Auto Express asked Seat-Cupra CEO Markus Haupt for more detail and he responded: “The conversations are on a very good level. They’ve confirmed they are studying our [proposal] to get rid of the tariffs, and… that in one or two months, we will get a positive answer.”

Could this lead to lower prices for the Tavascan? “When we were hit by the tariffs, we decided not to [add them] to customer prices. So there will probably not be a big price effect. The direct effect will be more on our side in terms of profit.”

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. 

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 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. So the only feasible solution for us is the way we decided to go, that is trying to get a deal with the European Commission to get rid of the tariffs,” concluded the boss. 

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