At the end of October, in a bid to protect its auto industry, the European Union began the application of new tariffs on Chinese-built electric vehicles, with the levies – which go as high as 45.3% depending on the automaker – set to be in place for the next five years.
Faced with those restrictions, some manufacturers are shifting production and assembly to Europe to lower the cost around tariffs, but many Chinese automakers are changing their tack by ramping up exports of hybrid vehicles to the continent. The tariffs do not apply to hybrid cars, and Chinese carmakers are reportedly planning more hybrid models for the key market to sidestep the block being imposed by the EU, Reuters reports.
Hybrid vehicles are gaining in popularity in Europe as buyers consider them an affordable compromise between internal combustion and all-electric powertrains. From July to October, hybrid exports to the continent more than tripled to 65,800 units from the same period a year earlier, reversing a trend of sliding sales until earlier this year and in 2023, according to China Passenger Car Association data.
The increase helped exports of plug-in hybrids and conventional hybrids account for 18% of China’s total vehicle sales to Europe in the third quarter of 2024, doubling from 9% in the first quarter. The climb, which helps offset the reduction of EV shipments to 58% from 62% during the same period, is expected to gain momentum, with analysts projecting hybrid exports to Europe to grow to 20%, and speed up further next year.
China is stepping up its export drive to address overcapacity at home, and given the 100% tariffs on Chinese-made EVs in the United States and Canada, Europe is one of the most obvious outlets for Chinese carmakers.
While an influx of hybrids from China could trigger intense price competition in Europe’s hybrid vehicle market, experts say that Chinese firms are likely to tread more carefully for fear of sparking another round of tariffs from the EU.
Meanwhile, Japanese automakers are also taking advantage of the growth of conventional hybrids in Europe this year and addressing their overcapacity problems in China. Honda, which suffered a 29% slump in China vehicle sales in the first nine months of this year, exports two conventional hybrids, one plug-in hybrid and one pure EV model from China to Europe.
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hybrid car? their engines are not even Euro 5 certified.
You’re using Euro certificationa as a benchmark of engine quality? Hahahahahaha. Since when Euro cars are known for reliability or durability?
wont last long, sure kena ban also