EU to discuss high tariffs on HYBE-led vehicles following Chinese electric cars, aiming to block 'detour'

*This content was translated by AI.

The European Union (EU) is considering imposing additional tariffs on plug-in HYBE-led vehicles (PHEVs) following its decision to levy high tariffs on Chinese-made pure electric vehicles. This move comes after high tariffs were applied to Chinese electric vehicles at the end of 2024, prompting Chinese automakers to attempt entry into the European market by promoting PHEVs equipped with internal combustion engines and fuel tanks.

Foreign media outlets, including the German business daily Handelsblatt, reported that EU authorities based in Brussels are preparing new trade sanctions targeting Chinese-made PHEVs. This measure aims to address loopholes in trade regulations that the European automotive industry has consistently demanded be closed, effectively expanding the scope of the trade dispute from electric vehicles to HYBE-led vehicles.

Since the tariff barriers were implemented, sales of Chinese-made PHEVs in Europe have surged significantly. According to industry sources, BYD's registered PHEV units in Europe have grown faster than its electric vehicles this year, while Chery Automobile has also exported tens of thousands of PHEVs to Europe—several times more than its electric vehicle exports. With one out of every ten new cars sold in Europe now identified as Chinese-made, local automakers have expressed concern over the expanding market share of Chinese companies and have been calling for swift action from the EU.

While additional tariff measures for HYBE-led vehicles are still in the discussion phase, EU authorities are reportedly already proceeding with the formalities to launch an official investigation. If member states grant their approval, new tariff policies could be implemented within the next few months. Previously cautious about provoking the Chinese government, European countries are gradually adopting tougher trade responses amid growing concerns over the weakening competitiveness of their domestic industries.

Conversely, automotive industry experts view Europe's measures as merely a temporary fix. They particularly note that "since the European market remains highly profitable, additional tariffs alone cannot fully block the expansion strategies of Chinese companies." In reality, several Chinese automakers are expanding their production bases by building factories locally in Europe or leasing idle plants from established European brands such as Nissan to mitigate tariff burdens.

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*This content was translated by AI.