Chinese Cars: the Hybrid Strategy to Circumvent EU Tariffs and Conquer the Market. Commission Defeated. - Economic Scenarios

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The EU is trying with tariffs to dampen imports of e-cars from China. However, the cost advantages of the manufacturers are enormous, says one expert. For local customers it can soon become cheaper.

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Due to EU tariffs on e-cars, Chinese automakers are delivering significantly more plug-in hybrids to Europe, according to the Handelsblatt. Manufacturers such as BYD or Lynk & Co achieved a sales increase of 364 percent.

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The European Union wanted to stop the arrival of economic Chinese electric cars, and it did so with strong trade barriers. Measures that have had an unwanted effect and is China's bet on exports.In 2024, the European Commission tried to stop the massive entry of Chinese electric cars with tariffs of up to 45%, seeking in this way to protect the local industry from what they consider unfair competition.But, far from deterring Asian manufacturers,…

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Manufacturers such as BYD and Geely react flexibly to high additional charges for electric cars. They now export more plug-in hybrids to Europe. A double strategy change.

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Chinese car manufacturers seem to have adapted: As a result of EU tariffs on e-cars, they deliver more plug-in hybrids to Europe instead.