Tag Archives: Hybrid cars

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The Hybrid Trojan Horse: How China’s Carmakers Are Outsmarting Europe

Europe thought it had built a wall. A big, tariff-shaped fortress designed to keep the advancing army of Chinese EVs from storming the castle of Volkswagen, Peugeot, and Fiat. Since October 2024, Brussels has been slapping chunky import duties on electric cars from the People’s Republic—up to a wallet-clenching 45 percent in some cases. The idea? Protect Europe’s car industry from Beijing-backed brands flooding the market with cut-price EVs.

But here’s the problem: the Chinese didn’t bother with the front gate. They’ve found a side door—marked Hybrids.

See, plug-in hybrids (PHEVs) sit in a cushy grey area of EU tariffs. Instead of being battered with 27 or even 45 percent duties, they get a far friendlier 10 percent. For buyers, that can be the difference between “Ooh, that’s cheap” and “Sorry, darling, we’ll just buy a Golf.” For Chinese manufacturers, it’s basically the difference between a profitable invasion and a money-burning retreat.

Take BYD, for instance—the battery giant turned carmaker that’s been gleefully gnawing away at Tesla’s lunch. Its Atto 3 EV in Germany suddenly costs an extra €10,000 thanks to the tariffs, which moves it from “shrewd bargain” to “well, maybe I’ll just buy a Kia.” Meanwhile, the plug-in hybrid Seal U? Only slapped with about €4,000 in extra duties. Result: BYD’s PHEV registrations in Europe tripled in just six months, with 20,000 units already on the books.

MG, the once-British badge now operated by China’s SAIC, has gone the same route. Faced with an eye-watering 45.3 percent tariff on its EVs, it’s quietly pivoted to hybrids. Sales of the MG HS, ZS, and MG 3 are up, while its EVs have fallen off a cliff—down 60 percent in just half a year. And then there’s Lynk & Co, the “hipster” Geely-owned brand that hands out cars on a subscription basis. Yep, they’re stuffing as many PHEVs onto boats to Antwerp as humanly possible too.

“It was only a matter of time,” says Beatrix Keim, a German car industry insider. She’s right. You don’t need to be Sun Tzu to see that when one battlefield is hostile, you retreat and attack from another angle. The EU tariffs are a blunt instrument, and the Chinese are already adapting faster than Europe’s regulators can type out a press release.

The most delicious irony? Brussels knows all this. It’s not even pretending hybrids aren’t a loophole—it just seems happy to look the other way. Officials are apparently banking on future negotiations with China’s hyper-aggressive automakers rather than tightening the screws. Which means, in the meantime, European streets will keep filling up with cheap Chinese PHEVs, while local brands fumble around trying to reinvent the compact hatchback.

So, has the EU bought itself some breathing room? Perhaps. But if history has taught us anything, it’s this: when the Chinese can’t get through the front door, they’ll climb in through the window. And right now, that window is the hybrid.

Source: Handelsblatt

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Increased export of hybrid cars from China to Europe

After the European Commission imposed new tariffs on electric cars imported from China, Chinese manufacturers have been trying to find ways to avoid them, one of which is production on European soil. However, the decline in demand for electric cars in Europe has forced them to focus more on hybrids.

The new tariffs of 35% on all imported electric vehicles made in China that came into effect in November do not include hybrids. This type of vehicle has been recording a growth in sales recently, and in October every third vehicle sold was a hybrid. This gave an opportunity to Chinese manufacturers to increase the export of this type of car to Europe.

The new regulations will be in force for the next five years and apply in addition to the already existing 10 percent tariff on imports of cars from outside the European Union. How important the European market is for Chinese manufacturers is shown by data from the China Passenger Car Association (CPCA). According to these data, 65,800 hybrid cars were exported to Europe from July to October. That’s three times more than the same period in 2023.

Hybrids and plug-in hybrids also accounted for 18 percent of Chinese car sales in Europe in the third quarter of this year. That’s more than double the share of these vehicles compared to the first three months of this year, when Chinese hybrid car sales in Europe accounted for just 9 percent of total sales.

Source: Reuters

News

Škoda will continue to develop ICE and hybrid cars

Last month, Mercedes announced that it will continue to develop ICE and hybrid cars in the future, and it seems that Škoda will follow the same path. At least as long as there are buyers who choose this type of vehicle.

The growth of demand for electric cars in the world is on the rise, however, most European car manufacturers are struggling with competition, which, supported by government subsidies and lower labor costs, offers cars at lower prices. This forces most of the world’s manufacturers to continue offering cars with ICEs.

“We will offer our customers everything they are looking for, from diesel and petrol engines, through mild hybrids or plug-in hybrids, all the way to electric vehicles. From our point of view, this is not about competing for the latest internal combustion engine, but about putting the desire of our customers in the center of attention. Our position, but our attitude is as reasonable as the one Škoda has accustomed us to,” said Chairman of the Board of Management of Škoda Klaus Zellmer to the Spanish motor.es.

Although EU regulations are forcing manufacturers to switch to fully electric cars, it is the customers who set the speed. A large number of them still do not trust electric cars and choose ICEs or hybrids. In addition, under the pressure of the current situation with Chinese cars that are rapidly conquering the European market, Renault Group head Luca de Meo suggests that European manufacturers join forces to protect the European market.

Last month, Luca de Meo stated that Europe is facing major challenges and that the alienation and disorientation of the European automotive industry will lead to a structural trade deficit for Europe. He also warns that the phase-out of internal combustion engines, which is planned for 2035, could mean a decrease in the competitiveness of the European car industry. According to him, ICEs have been a protective barrier for Europeans for years, and now with the development of electric cars and the increased need for batteries, that protection is disappearing because the Chinese control 75 percent of global battery production.

“Speed is important against the Chinese. We are in an uncertain world. In the past, when we had cars with internal combustion engines, we could predict what was coming. Now, if you take four or five years to react, it is too late,” said de Meo.

Source: motor.es, Automotive News Europe, Škoda