Major car brand's 'whole future at risk' amid fears European Union tariffs could disrupt sales

Speaking to Reuters, Wayne Griffiths, who leads Seat and Cupra under Volkswagen, also rejected calls to move production of vehicles to another location following its investment in the Anhui plant in eastern China.

The European Union announced that it would launch tariffs on electric vehicles made in China that are imported to Europe as part of plans to protect industry.

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Under current plans, the Cupra Tavascan EV would face a 21.3 per cent EU import tariff, which could also see the brand miss carbon dioxide reduction targets, potentially leading to fines.

Speaking to Reuters, Griffiths added: "It puts the whole financial future of the company at risk.

"The intention was to protect the European car industry but for us, it's having the opposite effect. We need to find a solution."

Other major brands will see tariffs from the EU including BYD (17 per cent), Geely (19.3 per cent), SAIC (36.3 per cent), other cooperating companies (21.3 per cent) and all other non-cooperating companies (36.3 per cent).

The Barcelona-based manufacturer has seen sales success in the UK over the last few years, with 16,715 cars sold in 2024 already - rivalling the likes of Citroen and Dacia, in addition to almost doubling the sales total of Fiat.

The Spanish brand has a 1.45 per cent market share, while sales of its cars in the UK have grown by 25.4 per cent since last year, according to data from the Society of Motor Manufacturers and Traders (SMMT).

In July alone, the brand sold 2,798 cars, pushing its market share for the month to almost two per cent. It also sold more vehicles than Honda, Mazda, Porsche and Tesla.

Cupra has several popular vehicles on the market in the UK, headlined by its Born electric vehicle model, with a range of up to 366 miles and a price tag of £36,475.

Other popular models include the Formentor hybrid SUV, the Leon estate and the new Tavascan electric vehicle.

The Tavascan, as well as BMW's electric Mini, would have been hit with a 38.1 per cent tariff under the earliest proposals, although these were slashed to 21.3 per cent in August.

Tesla, which also manufactures electric cars in China at its Shanghai Gigafactory, saw tariff rates cut to just nine per cent.

These vehicles will also face the European Union's standard 10 per cent duty on car imports, which has prompted some Chinese brands to move operations closer to Europe and North America.

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China's best-selling electric vehicle manufacturer - BYD - has signed a $1billion (£762million) deal with the Turkish Government to establish a plant since Turkey is part of the EU's Customs Union.

It has also looked into the viability of establishing a plant in Mexico, although these plans are in jeopardy after the US Government said tariffs would increase dramatically if it chose to move operations.