German automotive group Volkswagen AG is considering relocating production of the electric Cupra Tavascan from China to Europe, according to sources cited by Handelsblatt and reported by Reuters.
The model, currently manufactured in China, was subject to an additional 20.7% tariff on top of the standard 10% EU import duty. These measures were introduced in 2024 to counterbalance state subsidies granted to Chinese carmakers. However, the Comisia Europeană later granted Tavascan an exemption in exchange for a minimum price commitment and a predefined import quota.
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Move could mitigate EU tariff risks
Producing the vehicle in Europe would remove future tariff risks and potentially enhance its competitiveness in the region. Representatives of SEAT / Cupra have not issued an official statement.
Globally, Volkswagen delivered 8.98 million vehicles in 2025, down 0.5% year-on-year. Sales in China fell 8% to 2.69 million units, amid rising competition from local manufacturers.
In North America, deliveries declined by 10.4%, impacted by new trade measures introduced under President Donald Trump. Europe recorded a 3.8% increase to 3.38 million vehicles, while South America saw an 11.6% rise to 663,000 units.
Photo: Volkswagen Group
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