Chinese companies are seeking to overcome the EU’s additional tax with a “hybrid”
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Additional taxes applied in Europe do not include hybrid vehicles. Experts say that manufacturers such as BYD are turning to PHEV, or rechargeable hybrid vehicles, to continue growth in the region. If things continue like this, China’s hybrid vehicle exports to Europe are expected to grow by 20% this year and faster next year.
During the July-October 2024 period, China’s hybrid vehicle exports to Europe tripled compared to the same period last year, reaching 65,800 units. While hybrid vehicles accounted for 18% of China’s total vehicle exports to Europe, this rate was 9% in the first quarter of the year. In the same period, the proportion of electric vehicles decreased from 62% to 58%.
Chinese manufacturers aim to offer more affordable models to gain a share in the hybrid market dominated by Europe and Japan. For example, BYD launched its first hybrid model for the European market, the Seal U DM-i. Of course, Japanese manufacturers are also benefiting from hybrid demand in Europe. Honda exports two full hybrid and one PHEV models from China to Europe.
However, experts state that Chinese companies should be careful in their price strategies against the risk of triggering more taxes. If you remember, the additional tax applied only to electric vehicles in our country was extended to all vehicles coming from China. Such a situation may also occur in Europe.
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