BUSINESS

VW China Venture Secures First EU Tariff Exemption With EV Price Pledge

Published: Feb. 12, 2026 4:36 a.m. GMT+8

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Volkswagen (Anhui) Automotive Co. Ltd., Aug. 15, 2025. Photo: VCG

The European Commission has accepted a price undertaking from Volkswagen (Anhui) Automotive Co. Ltd., exempting its new-energy vehicle exports from anti-subsidy tariffs in the first such arrangement since the bloc imposed levies on China-made electric cars.

The agreement, announced Tuesday, sets out a potential path for automakers to navigate the European Union’s trade barriers through a combination of minimum pricing commitments, export caps and local investment pledges. Other China-based manufacturers are now weighing similar steps.

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The European Commission accepted Volkswagen Anhui’s price undertaking, exempting its new-energy vehicles from EU anti-subsidy tariffs, the first such arrangement since the bloc imposed these levies.
The deal involves minimum import prices, export limits, and local investment, with potential retroactive tariffs if terms are violated.
Other China-based automakers are considering similar proposals; most face EU duties of 7.8% to 35.3% on new-energy vehicles exported from China.

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Who’s Who

Volkswagen (Anhui) Automotive Co. Ltd.: Volkswagen (Anhui) Automotive Co. Ltd. is a joint venture, 75% owned by Volkswagen AG. Its new-energy vehicle exports are exempt from EU anti-subsidy tariffs due to a price undertaking. This agreement sets minimum import prices and volume limits for its Cupra Tavascan model, along with investment commitments in the EU by SEAT S.A. Volkswagen Anhui submitted its proposal on October 10, 2025.

Volkswagen AG: Volkswagen AG, through its 75%-owned joint venture Volkswagen (Anhui) Automotive Co. Ltd., has secured an exemption from EU anti-subsidy tariffs for its new-energy vehicle exports. This allows the Cupra Tavascan model to be exported to the EU under minimum import price and volume limits. Additionally, its subsidiary SEAT S.A. will invest in EU new-energy vehicle projects.

SEAT S.A.: SEAT S.A., a Spanish subsidiary of Volkswagen AG, has committed to investing in new-energy vehicle projects within the European Union. This commitment is part of an agreement that exempts Volkswagen (Anhui) Automotive Co. Ltd.'s Cupra Tavascan model from EU anti-subsidy tariffs. The agreement involves a minimum import price and strict volume limits for exports.

Tesla Inc.: Tesla Inc.'s Shanghai plant is subject to a 7.8% anti-subsidy surcharge on its new-energy vehicle exports to the European Union. These duties were enforced starting October 30, 2024. This rate is specific to Tesla, contrasting with the higher rates faced by other manufacturers like SAIC Motor Corp. Ltd. and most other producers.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is a state-backed Chinese automaker. Its Shanghai plant faces the highest anti-subsidy tariff rate of 35.3% on its new-energy vehicle exports to the EU. This rate is significantly higher than those imposed on other manufacturers like Tesla (7.8%) or the general 20.7% levy. The article highlights SAIC as an example of a company subject to substantial EU duties.

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What Happened When

Oct. 30, 2024：: The EU began enforcing five-year anti-subsidy duties on China-made new-energy vehicles.

Oct. 10, 2025：: Volkswagen Anhui submitted its pricing proposal to the European Commission.

December 2025：: The European Commission initiated a review of Volkswagen Anhui’s pricing proposal.

Jan. 12, 2026：: The European Commission issued guidelines to help exporters prepare proposals that comply with World Trade Organization rules.

As of the Tuesday the agreement was announced (exact date unspecified, presumed between Jan. 12, 2026, and present)：: The European Commission announced its acceptance of the price undertaking from Volkswagen (Anhui) Automotive Co. Ltd., exempting its new-energy vehicle exports from anti-subsidy tariffs.

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