KATHMANDU: Chinese automakers are adapting to European Union tariffs on electric vehicles by shifting focus to plug-in hybrids, according to a new industry report.
The European Union imposed tariffs on China-made EVs in late 2024 to limit low-cost imports. The move was expected to slow Chinese EV growth in Europe. However, brands quickly adjusted their strategy.
Companies such as BYD and Chery have increased plug-in hybrid shipments to Europe. These models are not fully electric and still include combustion engines.
Industry data suggests plug-in hybrid sales from Chinese brands are growing faster than pure EV sales in the European market. This has raised concerns among European automakers about a regulatory gap in current tariff rules.
Officials in the European Union are reportedly considering new measures. The new plan could extend tariffs to plug-in hybrid vehicles as well.
The potential move is still under discussion and may require approval from member states.
Analysts from UBS say higher duties may slow expansion but are unlikely to stop it. Chinese brands still benefit from strong demand and competitive pricing in Europe.
Some manufacturers are also exploring local production in Europe. They are using underused factories and planning new facilities to reduce tariff impact.
Despite political pressure, Chinese automakers are expected to continue expanding in the European market, supported by hybrid demand and local manufacturing strategies.
