Overview
- The European Commission is reported to be preparing measures that would extend anti-subsidy duties applied to China-made battery-electric vehicles to plug-in hybrid electric vehicles, potentially adding levies similar to the existing extra duties.
- The move follows strong market data showing electrified models drove growth in May, with ACEA reporting battery-electric registrations up about 39.1 percent, plug-in hybrids up about 13.2 percent, and hybrids up about 8.2 percent.
- Chinese automakers have rapidly increased their footprint in Europe, with the five largest Chinese-owned groups registering roughly 619,353 cars in January–May and BYD selling more than 32,000 cars in May to top Chinese brand monthly sales.
- Legacy European and other incumbent manufacturers have ceded share as lower-priced Chinese models and wider electrified choices expanded dealer networks and consumer demand for cheaper electrified cars.
- Any new PHEV tariff plan would require approval by a majority of EU member states and could be implemented as soon as July, which would likely raise import prices, encourage more local production, and change dealer pricing and consumer choices across Europe.