Founded in 2018, in just a few years Cupra has managed to win over customers, first by giving a new, sportier look to the Seat range, applying its own logo, and then with its own models. A success that exploded with the Formentor - a compact coupé SUV with power outputs from 150 to 390 PS - and that continues unabated, focusing on both traditional engines and electrified and electric powertrains.
Now, however, heavy clouds are beginning to gather on the horizon and they take the form of the duties imposed by the European Commission on electric cars produced in China. This includes the Cupra Tavascan, which is an electric medium SUV produced at Volkswagen's Anhui plant operated by a joint venture with the Chinese JAC Automobile Group. This is no small problem for the Spanish manufacturer, which - as reported by Reuters - has launched a new appeal to Europe through its CEO Wayne Griffiths.
Future at risk
It is precisely Tavascan's Chinese passport that is the problem. The duties launched by the Commission in fact affect all electric cars produced within the borders of the eastern giant, regardless of which brand they belong to.
"We are not a Chinese brand trying to invade the European market. Ours are not cars for the masses. They are not subsidised. They are something different. That is what we are trying to explain."
Griffiths said at an event in Barcelona at the Terramar presentation.
Cupra Tavascan
The Spanish carmaker's number one went on to point out that 'the Cupra brand would be wiped out' if the European Commission confirmed the duties, currently at 21.3 per cent on the Tavascan. Moving the production line to a European plant is out of the question, the investment in expanding the Anhui factory has now been made.
The problem highlighted by Griffiths is that without the projected sales of the Tavascan Cupra next year would not meet the CO2 emission reduction targets imposed by the EU, and would therefore face heavy fines. As they say: it's raining cats and dogs.
"It puts the entire financial future of the company at risk. The intention was to protect the European car industry, but for us it is having the opposite effect."
According to Reuters, Griffiths said that negotiations were currently underway with 'several levels' of the European Commission - along with the German and Spanish governments - to try to convince the European leadership to cut or eliminate the planned duties.
The tariff issue on Chinese electric cars:
Source: Reuters