Volkswagen Challenges EU Tariffs on Chinese EVs Following Tesla Reduction

Volkswagen Group has intensified its appeal to the European Commission to reduce tariffs on battery electric vehicles (BEVs) manufactured by European automakers in China. This move comes in the wake of the commission's decision to lower the tariff rate for U.S. electric vehicle (EV) giant Tesla to 9 percent.

On Thursday, the European Commission proposed definitive countervailing duties on BEV imports from China, following the imposition of provisional duties on July 5. The newly proposed duties range from 17 percent for China's leading EV producer BYD to 36.3 percent for the state-owned automaker SAIC, with Tesla benefiting from a notably lower rate of 9 percent "at this stage."

For non-sampled BEV manufacturers, the commission set a weighted average duty at 20.8 percent, while non-cooperating companies, which include Volkswagen Group, are facing a significantly higher duty of 37.6 percent. All these duties are to be added on top of an existing 10 percent duty on Chinese-made EVs.

"The Volkswagen Group continues to find it incomprehensible that Chinese manufacturers are subject to lower countervailing duties than European manufacturers," a company spokesperson told Metalnomist. The spokesperson further criticized the commission for not thoroughly reviewing the previous investigation and hinted at potential further actions, stating, "We will examine and evaluate the EU Commission's explanation very carefully. And of course, we will also reserve the right to take further steps in the proceedings."

Earlier this month, China also expressed its discontent with the tariffs, filing a case at the World Trade Organisation (WTO).

Stakeholders have until August 30 to submit feedback to the commission.

Volkswagen declined to comment on reports that the tariff on their Cupra Tavascan EV model had been reduced to 21.3 percent from 37.6 percent.