Volkswagen has criticized Brussels for its decision to impose “incomprehensible” tariffs on electric cars imported from China.
The German automaker expressed strong disapproval after the EU proposed higher import tariffs for Volkswagen compared to other Chinese competitors, including Tesla. In its most forceful response to the proposal yet, Volkswagen, which owns Audi and Porsche, urged other EU member states to reject the policy.
This backlash occurs against the backdrop of a growing trade conflict between the EU and China, driven by fears that Chinese-backed manufacturers are flooding Western markets with inexpensive electric vehicles.
Brussels has accused China of subsidizing its automotive industry heavily, enabling its manufacturers to undercut European brands. In response, the EU has threatened to impose additional tariffs on Chinese-made electric vehicles, supplementing the existing 10% levy.
Under draft regulations confirmed by EU policymakers on Tuesday, electric car imports from China will face increased tariffs: 17% for BYD and 19.3% for Geely.
US-based Tesla, with significant operations in China, is also affected by the proposal but has secured a lower tariff of 9%. In contrast, Volkswagen is set to face a 21% levy, which will impact its joint venture with China’s JAC. This partnership is responsible for manufacturing Cupra SUVs that are scheduled to be imported to Europe later this year.
Volkswagen is not alone among European manufacturers with Chinese ties; rival BMW also produces its electric Mini models in Zhangjiagang through a local partnership.
A Volkswagen spokesman stated: “The Volkswagen Group continues to find it incomprehensible that Chinese manufacturers face lower countervailing duties compared to European manufacturers. The disparity among manufacturers raises concerns about its impact on the price competitiveness of European brands. We urge EU member states to critically review the procedure and the outcomes proposed by the EU Commission, and to reconsider them.”
The spokesman added that Volkswagen would assess the EU’s latest decision and reserved the right to pursue further actions.
The proposal represents another setback for Volkswagen, which has already been struggling with declining electric car sales and increased competition from Chinese rivals.
In the three months leading up to June, sales of battery-powered models like the e-Golf remained flat at 180,800 units across the group.
Volkswagen has previously cautioned that a trade war could further impact electric vehicle sales throughout Europe.
This comes on the heels of the German automaker’s significant investment in China, where it partnered with local companies to deliver 3.2 million vehicles last year. Volkswagen operates 39 plants in China and employs 90,000 people there.
