Volkswagen is considering building a future successor to the Cupra Tavascan in Europe rather than China, reflecting how shifting trade dynamics and supply-chain concerns are influencing global electric vehicle production strategies.
The Cupra Tavascan, an all-electric SUV from Volkswagen Group’s Spanish performance brand, is currently produced in China for global markets. The arrangement was initially viewed as a cost-efficient way to scale production and tap into China’s advanced EV manufacturing ecosystem. But as geopolitical tensions intensify and trade policies evolve, automakers are reassessing where their next generation of vehicles should be built.
In recent years, trade frictions between major economies have added new layers of uncertainty to cross-border manufacturing. Tariffs, subsidy frameworks, and evolving industrial policies—particularly in the European Union and the United States—have reshaped incentives for automakers deciding where to invest. European policymakers have also placed greater emphasis on localizing clean technology production, including batteries and electric vehicles, as part of broader industrial and climate strategies.
Against this backdrop, Volkswagen’s consideration of a European production base for a future Cupra Tavascan successor signals a broader recalibration. Producing vehicles closer to their primary markets can reduce exposure to tariff risks and logistical disruptions, while also aligning with regional industrial policy goals. It may also help the company navigate scrutiny surrounding imports of Chinese-made EVs into Europe.
Supply-chain resilience has become a central theme in the automotive sector since the pandemic exposed vulnerabilities in global production networks. Semiconductor shortages, shipping delays, and fluctuating raw material costs underscored the risks of concentrated manufacturing footprints. For electric vehicles in particular, battery sourcing and critical mineral supply have become strategic priorities.
Volkswagen has already invested heavily in expanding its European EV ecosystem, including battery partnerships and dedicated electric platforms. A decision to assemble a future Cupra model in Europe would likely integrate the vehicle more closely into this regional network. It could also support employment and industrial capacity within the European Union at a time when policymakers are encouraging domestic EV production.
However, shifting production is not a simple calculation. China remains one of the world’s most advanced EV manufacturing centers, offering scale, supplier density, and competitive costs. Any decision would need to weigh economic efficiency against strategic considerations such as regulatory stability, market access, and brand positioning.
For Cupra, which has positioned itself as a sporty and design-focused electric brand within the Volkswagen portfolio, production location also intersects with brand identity. Manufacturing in Europe could reinforce its European roots, particularly as the company seeks to expand across the continent and into other global markets.
Volkswagen has not announced a final decision, and any change would likely be tied to long-term product planning cycles. Still, the deliberation itself reflects how quickly the global EV landscape is evolving. Automakers are no longer optimizing solely for cost; they are increasingly balancing economics with resilience, regulatory alignment, and geopolitical risk.
As electric vehicle adoption accelerates and governments sharpen industrial policy tools, decisions about where cars are built may carry as much strategic weight as how they are engineered. For Volkswagen and its Cupra brand, the question of Europe versus China illustrates the new calculus shaping the future of EV production.