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More Chinese companies are expected to establish recent price commitment agreements with the European Union, according to China’s Ministry of Commerce. This follows the European Commission’s decision to waive tariffs on a China-manufactured Volkswagen SUV, which will now be imported under a minimum price and quota system.
On February 10, the European Commission announced it would grant a tariff exemption for the electric Cupra Tavascan SUV coupe, produced in China, under a “minimum price plus annual quota” arrangement.
The Ministry confirmed its willingness to maintain dialogue and open communication with the EU to promote a transparent and stable market environment that supports the growth of the automotive sectors in both regions, stated spokesperson He Yadong.
He added that China and the EU have previously reached a “soft landing” regarding electric vehicle issues within the framework of World Trade Organization rules after numerous negotiations. This outcome has been widely praised by the international community and industries on both sides.
China and the EU are committed to helping Chinese electric vehicle manufacturers utilize price commitments effectively. To facilitate this, the European side has released a guidance document created during bilateral discussions and has pledged to conduct assessments in a non-discriminatory, objective, and fair manner.
The China Chamber of Commerce for Import and Export of Machinery and Electronic Products plans to encourage and support companies involved in this process to fully utilize the consensus, apply for price commitments, and work to protect their export rights to Europe. This effort aims to foster the healthy development of related industries across both markets, the CCCME stated.
Replacing high tariffs with price commitments has preserved a vital pathway for Chinese electric vehicles to access the EU market, helping manufacturers avoid significant tariff impacts, thus stabilizing market entry and industry expectations. Last year, Chinese brands represented over 10% of Europe’s electric vehicle market.
Cui Dongshu, secretary general of the China Passenger Car Association, noted that price constraints will push companies away from low-cost competition and accelerate their move toward higher-end models and localized production within Europe. In the short term, major automakers will dominate the market due to their technological edge and scale advantages. Over time, collaboration between Europe and China on industrial chains and technical standards is expected to drive Chinese EVs to grow at an average annual rate of approximately 20% in the EU.
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