22:37 04-12-2025

EU probes price undertaking to replace tariffs on VW EVs

The European Commission has opened an official review of anti-subsidy duties on Volkswagen electric vehicles built in China. The trigger was a price undertaking proposed by VW Anhui: instead of a fixed tariff, a minimum-price arrangement could be applied if Brussels considers it acceptable and realistically enforceable.

The review concerns measures in force after the EU’s October 2024 decision. Deliveries of EVs from the Volkswagen Anhui plant currently face an additional 20.7% on top of the basic import duty. For Seat/Cupra, the issue is sensitive because part of the brand’s European lineup is manufactured in China, and the company had previously described such rates as a serious risk to the project’s economics.

The Commission will now assess whether a price undertaking can replace duties without diluting their effect. Any mechanism would need to be transparent, legally workable, and comparable in outcome to tariffs. The result will be closely watched across the market: if the approach is approved, it could set a precedent for other carmakers looking to keep access to the EU without steep markups, albeit under price constraints. For the industry, this looks like a pragmatic test of whether calibrated price controls can stand in for blanket trade penalties.