The introduction of additional import duties by the European Union on Chinese-made all-electric cars was intended to slow the expansion of Eastern brands on the Old Continent. However, the reaction from Beijing and the auto giants based there was not long in coming and redrawn the market map. Instead of fighting against protectionist tariffs on battery models, Chinese manufacturers redirected their resources and product portfolios to plug-in hybrids (PHEV). The results of this maneuver are more than impressive - every third PHEV sold in Europe is now coming off their assembly lines.
The mid-year statistics confirm the complete success of this strategy. Data from analytics firm Dataforce shows that in June, Chinese brands captured a massive 34% of all plug-in hybrid deliveries in Europe. The main impetus for this surge came from players such as BYD, Chery and Geely, as well as brands with European roots and capital such as Polestar and Leapmotor. Overall, Asian concerns now account for 11% of total new car sales in the region and approximately a quarter of the entire hybrid segment. At the same time, the market share of pure electric vehicles remains relatively static (between 10 and 15%), which further strengthened the role of PHEV models as the main growth engine.
However, Brussels is already preparing a counteroffensive. According to Reuters, the European Commission is approaching a vote on extraordinary customs duties aimed directly at imported plug-in hybrids from China. The new levies are expected to be calculated according to an individual formula for each manufacturer – similar to the mechanism for pure electric vehicles, where rates vary between 7.8% and 35.3% depending on the level of cooperation with the investigating authorities.
However, the Chinese automobile giants are already preparing their next move to neutralize future financial sanctions, relying on full localization. A large part of them are actively building or renting ready-made production facilities on the territory of the European Union itself. Assembling cars directly on European soil will exempt their products from paying import duties, which will bring the war for market supremacy into a completely new, long-term stage.