Chinese automakers, such as BYD (002594.SZ) and Chery (CHERY.UL), are selling increasing numbers of plugin-hybrids within the European Union to avoid import tariffs on Chinese-built electric cars, based on newly released data.
Based on a survey conducted by research firm Rho Motion, the two automakers sold 3,269 and 757 plugin-hybrid vehicles (PHEVs) respectively, within the bloc in March, compared to close to zero sales in July 2024 when provisional duties were initially imposed.
In an effort to keep cheap Chinese-made battery-electric cars at bay, the EU introduced levies of up to 45.3% on BEVs made in China in November.
Confronted with disruption from U.S. tariffs, the EU and China are discussing reducing European tariffs.
In the meantime, EV producers such as as BYD and Leapmotor (9863.HK) have shifted their European strategy to take into account EU tariffs and more sluggish-than-anticipated BEV adoption in Europe. BYD announced that it will launch two additional PHEV models in Germany this year.
BYD pays a tariff of 27.5% on BEVs sold in the EU and 10% on PHEVs. In the report, this translates to paying 10,257 euros ($11,656) per Atto 3 BEV sold in Germany. The Seal U PHEV is priced at 3999 euros.
Chery sold 310 BEVs and 757 PHEVs paying a base 10% tariff and an additional 21.3% tariff on BEVs.
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