Electric cars have been at the center of a global automotive shift. But as markets adapt, so do strategies.
Chinese automakers, once laser-focused on battery-electric vehicles (BEVs), are now turning to hybrids as a way to stay competitive in Europe.
The European Union recently imposed steep tariffs on Chinese electric cars, citing unfair subsidies, according to Digi24.
These additional tariffs, ranging from 17% to over 35%, are on top of the existing 10% import duty.
But the measures don’t apply to hybrids, creating a loophole for manufacturers like BYD, Geely, and SAIC to target a growing market segment.
A Practical Middle Ground
Hybrids, which combine gasoline and electric power, are becoming popular in Europe. Buyers see them as a practical middle ground between traditional combustion engines and fully electric models.
This shift has given Chinese automakers a new focus. Analysts predict exports of Chinese plug-in hybrids (PHEVs) to Europe will grow by 20% this year and even faster in 2024.
Between July and October, hybrid vehicle exports to Europe surged. Over 65,000 units were shipped—more than three times the volume from the same period in 2023.
Hybrids now account for 18% of Chinese vehicle sales in Europe, up from 9% earlier this year. Meanwhile, fully electric vehicles have seen a slight decline in their share of exports.
Chinese automakers are also making pricing a key part of their strategy. BYD, for instance, recently introduced the Seal U DM-i, a plug-in hybrid priced at €35,900.
That’s cheaper than comparable models from Volkswagen and Toyota, two of Europe’s biggest players in the hybrid market.
Some manufacturers are considering local production to bypass tariffs entirely. BYD is evaluating hybrid and EV manufacturing at its plant in Hungary.
SAIC and Geely are also expanding their hybrid offerings, with Geely recently launching a new plug-in hybrid under its Lynk & Co brand.
