The European Union is preparing new measures against the rise of Chinese cars in Europe. This time, cheap Chinese plug-in hybrids will also face high import duties.
Unlike fully electric cars plug-in hybrids hitherto out of reach. But now that it is clear that Chinese manufacturers could avoid punishment by exporting hybrid models en masse to Europe, the European Commission now also wants to close that route.
Since the end of October 2024, additional import duties have applied in the EU for purely electric cars from China. The measures were introduced because Brussels believes that Chinese manufacturers enjoy unfair competitive advantages thanks to extensive state aid. For some brands, total import duties rose to more than 45 percent.
Chinese plug-in hybrid beats German manufacturers at home
However, plug-in hybrids were excluded from this scheme and were only taxed with the regular import tariff of 10 percent. Chinese car manufacturers quickly responded and shifted their attention to these models. That strategy proved successful.
Market data from May 2026 shows that BYD has become the largest provider of plug-in hybrids in Germany for the first time, beating brands such as Volkswagen and Mercedes-Benz at home. The brand registered 4,290 new vehicles. The Atto 2 DM-i, the Seal U DM-i and the Seal 6 DM-i Touring appear to be particularly popular among German motorists.
Thirty percent electric, 70 percent plug-in hybrid
The share of plug-in hybrids within BYD’s German sales has now risen sharply. Approximately 70 percent of new registrations consist of these models, while fully electric cars still account for ‘only’ approximately 30 percent.
While the European Commission denied at the beginning of this year that it had any plans for additional levies on Chinese hybrids, the situation now appears to have changed. According to German Handelsblatt there is a formal investigation into possible Chinese state aid for hybrid cars. The topic was also discussed by European government leaders during a recent EU summit.
Lower ‘penalty’ than fully electric
Brussels could present the new import duties within a few weeks. As with electric cars, rates will likely be set per manufacturer. Insiders do expect that the levies will be lower than for fully electric cars, because the battery in plug-in hybrids represents a smaller part of the vehicle value.
Meanwhile, Chinese car manufacturers are already looking further ahead. Various brands are investigating the possibilities of producing cars directly within Europe. This can be done through its own factories, but also by taking over or renting production capacity from European car manufacturers that are struggling with declining sales.
By our colleagues from AutoWeekan independent platform for car enthusiasts and buyers.
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