To avoid tariffs, China doubles down on pure electric models.
Since the EU imposed punitive tariffs on Chinese electric vehicles, plug-in hybrids (PHEVs) from China have experienced a dramatic export boom to Europe. According to Handelsblatt, citing data from market research firm Dataforce, manufacturers like BYD and Lynk & Co shipped a total of 33.000 partially electric vehicles to the EU in the first half of 2025 – a 364 percent increase compared to the same period last year.
BYD alone recorded 20.000 PHEV registrations in the EU, already more than triple its total sales for all of 2024. Similarly, Geely-owned Lynk & Co saw 4.000 EU registrations of its plug-in hybrid SUV »01« in just six months, reaching two-thirds of its previous full-year result (6.000 units).
The surge comes as Chinese automakers pivot to avoid EU tariffs: While the European Commission has imposed duties of up to 45 percent on Chinese-made battery-electric vehicles (BEVs), citing unfair subsidies, plug-in hybrids remain exempt.
»Chinese manufacturers have adjusted their sales tactics and are now focusing on tariff-free models«, Charles Lester, e-mobility expert at London-based Rho Motion, told Handelsblatt. Though the industry is building production capacity in Europe (e.g., BYD in Hungary), hybrid exports offer a fast workaround.
The loophole has drawn fire in Brussels: Green MEP Michael Bloss is reportedly pushing to extend tariffs to PHEVs. Whether the Commission acts remains unclear – but for now, Chinese automakers are capitalizing on the gap.
MK
