Chinese brands capture 34% of Europe's plug-in hybrid market
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Chinese automakers captured 34% of Europe's plug-in hybrid (PHEV) sales in June, up from previous months, as tariffs on battery-electric vehicles (BEVs) made imports less appealing. The shift reflects a strategic pivot by Chinese firms to circumvent EU tariff barriers that currently target BEVs but not PHEVs. BYD, Chery, and Geely led the surge, alongside brands with European ties like Polestar and Leapmotor.
Market Shift
Chinese brands captured 34% of Europe's PHEV market in June, according to Dataforce. Overall, Chinese manufacturers accounted for 11% of all new car sales in Europe and 15% of the EV market. However, EV sales have stagnated between 10% and 15% for 18 months, while PHEV sales climbed. In the broader hybrid market (including non-plug-in hybrids), Chinese automakers held nearly 25% share.
Tariff Response
The European Commission is moving to impose tariffs on Chinese PHEVs, as reported by Handelsblatt. The tariffs could follow a similar formula to those on BEVs, which range from 7.8% to 35.3% depending on cooperation with authorities. Approval from a majority of EU members is required before implementation.
Local Production
Chinese brands are expanding local production to bypass potential tariffs. BYD operates a plant in Hungary, SAIC plans a site in northern Spain, and Dongfeng, Chery, Geely, and Leapmotor may use existing European plants. This strategy could allow them to avoid new duties on PHEVs.
What's Next
The European Commission is expected to seek EU member approval for PHEV tariffs in the coming months. It remains unclear whether local production by Chinese firms will fully offset the impact of any new trade barriers.
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Chinese brands capture 34% of Europe's plug-in hybrid market
