The European Commission has accepted a price commitment from German automaker Volkswagen for imports of battery electric vehicles (BEVs) from China, according to the China Chamber of Commerce to the EU (CCCEU).
The decision will allow Volkswagen to import its CUPRA Tavascan model, produced at its plant in Anhui, China, to the EU at its proposed minimum import price, exempting it from the countervailing duties that were previously applied to BEV imports from China.
The EU imposed definitive countervailing duties on BEV imports from China for a period of five years in October 2024. The duties are 17pc for BYD, 18.8pc for Geely, 35.3pc for SAIC, and 7.8pc for US-based Tesla on vehicles imported from China. Other co-operating companies face a duty of 20.7pc, while the rate for all other non-co-operating firms is 35.3pc.
The price commitment was submitted by Volkswagen and its EU affiliate, Spain-based SEAT. An investigation by the Commission concluded that the price floor set by Volkswagen for this specific model would not cause injury to the EU industry and so was accepted.
In addition to selling at the agreed minimum price, Volkswagen has committed to limiting the volume of its BEV imports into the EU. The company will also invest in a series of strategic BEV-related projects within the EU, aimed at setting clear phase-in targets that support the bloc's industrial strategy and climate transition objectives.
The CCCEU said that its automotive working group recently initiated technical-level dialogue with the EU after the latter issued guidance on submitting price commitment applications. Some Chinese EV makers may assess and consider submitting their own price commitment proposals to the Commission based on their individual business circumstances, the chamber added.
The CCCEU also stressed the importance of clear and fair procedures in evaluating such proposals, calling on the EU to adhere to the principles of fairness, transparency, and non-discrimination throughout the assessment and implementation process to ensure equal treatment for Chinese companies.
The EU remains a major export market for Chinese new energy vehicle manufacturers. China exported 420,000 NEVs to the EU in the first three quarters of 2025 despite the BEV tariffs, because Chinese automakers increased shipments of plug-in hybrid electric vehicles (PHEVs), which are not subject to the same duty rates.
China exported 302,000 NEVs worldwide in January, double the volume recorded in the same month a year earlier, according to data from the China Association of Automobile Manufacturers.
A potential recovery in China's EV exports to the European market could help alleviate pressure on Chinese automakers. The government rolled back certain incentives starting in January, including halving purchase tax exemptions. This pullback contributed to a year-on-year decline in China's monthly domestic EV sales in January, the first such drop in years.
China's domestic new energy vehicle (NEV) sales reached 643,000 units in January, down by 19pc from the same period a year earlier.
