Chinese automakers are ramping up exports of hybrid cars to Europe and plan to launch more models for that market.
The European Union’s latest tariffs on electric cars do not apply to hybrids, which could help major Chinese car brands continue to expand in the region.
Murtuza Ali, an analyst at Counterpoint Research, predicts that hybrid vehicle exports from China to Europe will increase by 20% this year and higher next year.
According to Reuters, from July to October 2024, hybrid vehicle exports to Europe increased more than three times, to 65,800 units compared to the same period in 2023. Plug-in hybrids and conventional hybrids accounted for 18% of total Chinese car sales to Europe in the third quarter (double the 9% in the first quarter). However, the proportion of electric vehicle deliveries fell to 58% compared to 62% in the same period.
With a 100% tariff on electric vehicles made in China entering the US and Canada, the European market is much more accessible for Chinese automakers.
BYD is taking on Volkswagen and Toyota in Europe with its first PHEV, the Seal U DM-i. The Seal U DM-i starts at €35,900, which is €700 less than Volkswagen's best-selling PHEV, the Tiguan, and 10 percent cheaper than Toyota's C-HR PHEV. BYD is also considering producing both electric and hybrid vehicles at its Hungarian plant, Auto News reports.
SAIC also said it plans to offer products with various engine systems for the European market. In addition, Geely - China's second-largest automaker by sales - has also launched a new gasoline-electric hybrid model under the Lynk & Co brand for Europe in October 2024.
Japanese automakers are also taking advantage of the growth in conventional hybrids in Europe this year. Honda, which saw its sales in China fall 29% in the first nine months of 2024, is exporting two hybrids, one PHEV and one electric vehicle from China to Europe.
