Cupra is close to securing relief from EU import duties on the electric Tavascan, a model developed in Europe but built in China. At present, Chinese-made EVs in the bloc face a base tariff of 10 percent plus an additional compensatory duty of 20.7 percent. The Tavascan has become a public talking point after Catalonia’s leadership urged a review of the levy, which they argue undermines strategic investment.

The brand is lobbying for a compromise: reducing or scrapping the extra duty in exchange for an annual import quota and a minimum import price. At the same time, the company is tempering expectations, saying that when the levies were introduced they did not pass them straight onto retail prices. As a result, any change would likely show up in the brand’s finances rather than as a sudden drop on the showroom sticker. In essence, the move looks aimed at stabilizing margins rather than promising lower list prices.

Why is the Tavascan built in China at all? Volkswagen Group points to limited capacity in Europe: there simply wasn’t room to add production locally, so the model went into manufacture in China in partnership with JAC. With tariffs in play, that choice looks less straightforward, yet Cupra views a shift back to Europe as impractical for a product already on the market. From a manufacturing standpoint, retooling midstream seldom adds up.