SEAT says EU's reversal of combustion-engine ban would help EV transition

By Joan ‌Faus

MARTORELL, Spain, Dec 12 (Reuters) - The European Commission's expected decision to reverse ‍its ‌ban on selling new cars with combustion engines from 2035 will help ⁠Spanish automaker SEAT, a unit of ‌Volkswagen, transition to electric vehicles, its CEO told Reuters on Friday.

Markus Haupt said that while the company was convinced the future was electric, customer uptake has been slower ⁠than expected, forcing SEAT to be more flexible to cater to demand from other markets.

The EU's ​reversal would mark a key victory for Germany - ‌home of Volkswagen - in its efforts ⁠to protect its most important industry, which has come under intense pressure due to growing competition and trade barriers.

"Having a postponement of this ban ​is something that could help us to face a transition until the EV is 100% or almost 100% of the market," Haupt said at the automaker's new battery assembly plant outside Barcelona.

SEAT is also confident ​that it ‍will receive confirmation from ​the EU within a month or two that the bloc will remove the additional tariff of 20.7% on producing its Cupra line in China, Haupt said.

In October 2024, the 27-member bloc approved duties of up to 45.3% after the Commission began investigating whether China's EV makers were benefiting from unfair ⁠subsidies that could lead to a supply glut in Europe.

Last week, the Commission said it was considering removing ​tariffs on Volkswagen's EVs built in China, which the German car giant hopes could be replaced with an annual import quota and minimum price mechanism.

"We're aiming to get rid of the additional tariffs," ‌Haupt said, with the goal of reaching an undertaking agreement instead.

(Reporting by Joan Faus; Writing by David Latona; Editing by Andrei Khalip and Susan Fenton)