The EU is considering imposing additional tariffs on Chinese plug-in hybrid vehicles (PHEVs), following the existing maximum 35.3% tariff on Chinese battery electric vehicles (BEVs). PHEVs are a key export category for Chinese automakers to Europe, and any new tariffs would impact the European strategies of Chery, BYD, Geely, and other brands.
Policy Trend: EU Tariffs Target PHEVs
According to NetEase News and other media reports, the EU is evaluating the possibility of imposing additional tariffs on Chinese plug-in hybrid vehicles (PHEVs). This development marks an expansion of EU trade restrictions on Chinese new energy vehicles from battery electric vehicles (BEVs) to the hybrid segment, creating new policy uncertainties for Chinese automakers exporting to Europe.
Previously, the EU had imposed maximum tariffs of 35.3% on Chinese BEVs. The consideration of PHEVs is based on several factors:
- PHEV sales in Europe are growing rapidly, with Chinese brands steadily gaining market share
- The EU believes PHEVs also benefit from Chinese government subsidies, constituting "unfair competition"
- European automakers have pressured the EU Commission to expand trade protection measures
Impact Assessment on Chinese Automakers
If PHEVs are subject to additional tariffs, the following brands would be most affected:
- Chery: Tiggo 7 PHEV and Tiggo 8 PHEV are popular across multiple European countries
- BYD: Qin PLUS DM-i and Song PLUS DM-i rank among top-selling PHEVs in Europe
- Geely: Lynk & Co 01 PHEV and Emgrand L HiP perform strongly in Northern Europe
- SAIC: MG HS PHEV leads in market share in the UK and Spain
Tariff Rate Scenario Analysis
| Scenario | Tariff Rate | Impact Level | Affected Models |
|---|---|---|---|
| Base case | 15-20% | Moderate | ~25 models |
| Severe case | 25-30% | Serious | ~35 models |
| Extreme case | 35%+ (aligning with BEV) | Critical | All PHEVs |
Analysts note that PHEVs are the key "volume driver" for Chinese automakers in Europe. Compared to BEVs, PHEVs enjoy higher market acceptance in Europe with lower charging infrastructure requirements, serving as the "door opener" to the European market. If PHEV tariffs rise significantly, Chinese automakers' competitiveness in Europe would be substantially weakened.
Strategic Response Recommendations
- Accelerate local production: Build factories in EU member states like Hungary and Spain to circumvent tariff barriers
- Product transition: Increase investment in BEV products, enhancing pure electric models' product strength and brand recognition in Europe
- Market diversification: Reduce dependence on the European market, expanding into alternative markets like the Middle East, Southeast Asia, and Central Asia
- Channel optimization: Use cross-border B2B platforms like EX1000.COM to directly connect with European dealers, compressing intermediary costs
Automotive industry expert Zhao Yang believes the EU move is essentially a "defensive counterattack" following the lag in Europe's own new energy transformation. Chinese automakers should turn this challenge into a catalyst for accelerated globalization, building local capabilities in more markets.
