The Ministry of Transport and Logistics has imposed a temporary suspension on imports of Chinese-assembled Volkswagen cars after a request from the German automobile maker.
The Ministry said the ban was placed after Volkswagen wrote to authorities through the German Embassy stating that the Chinese-assembled vehicles were not legally authorized by Volkswagen.
The Chinese-made electric Volkswagen models have been available in the local market for over a year, gaining market share in the automobile vehicle market dominated by Toyota.
The popularity of the Chinese-assembled EVs surged after the Ethiopian government exempted all electric cars from VAT, excise tax and surtax as part of efforts to promote electric mobility. Only the customs tax, which is below 15 percent, remains for imported electric vehicles.
However, Volkswagen has now disowned the Chinese-made cars, claiming that they were not legally authorized by the company, according to the Ministry. The temporary suspension will remain in place until the matter is properly investigated and resolved.
In March of this year, the UAE also announced a temporary ban on imports of Volkswagen electric cars manufactured in China. The suspension applies to the registration of Volkswagen electric cars made in China at the Middle Eastern country’s licensing departments and aims to ensure that the vehicles meet the UAE market’s safety requirements and have undergone proper testing before being sold to customers.