Published Fri, Aug 28, 2026 · 01:47 PM
[BERLIN] Chinese automakers’ share of new car sales in Europe topped 11 per cent in July, as consumers continue to snap up more affordable plug-in hybrids.
A record third of plug-in hybrids registered in July were made by brands like Chery Automobile’s Jaecoo, according to Dataforce.
Unlike with fully electric vehicles, Chinese plug-in hybrid models do not currently face additional tariffs, though they may soon also be hit with duties, Germany’s Handelsblatt has reported.
Chinese brands are anticipating higher tariffs by “pushing cars into the market”, according to Julian Litzinger, an analyst at Dataforce. “They do that via attractive pricing to retail and commercial customers, but especially rental companies,” he said.
Chinese carmakers led by BYD are reeling in European consumers with more affordable models at a time when household finances remain under pressure. They are also capitalising on lingering concern around going fully electric due to patchy charging infrastructure.
Affordability is a key factor. Earlier in August, Citi analysts led by Harald Hendrikse said that three quarters of Chinese sales in the EU are from MG owner Saic Motor, BYD and Chery, companies that tend to offer lower-priced models.
Consumers are also being less picky about a brand’s origin. In a survey by Bloomberg Intelligence, 38 per cent of people had no qualms about buying a Chinese marque.
European automakers are feeling the squeeze from Chinese carmakers’ advances on their home turf, especially with profits shrinking in China.
Volkswagen, Europe’s biggest carmaker, is pushing to cut costs, though those efforts are facing resistance from labour leaders. Other companies such as Stellantis are allowing Chinese automakers to share their factories to ease overcapacity in the region.
“Europe’s hybrid bias is opening a lower-tariff lane for BYD, Chery and other Chinese automakers to gain share unless the EU extends levies to plug-in hybrids,” said Bloomberg Intelligence analysts.
While Brussels has not commented on whether it is planning tariffs on hybrids, member countries are indicating an appetite for such duties.
At a press conference this week, German Finance Minister Lars Klingbeil said Germany must defend industries such as steel, autos, chemicals and pharmaceuticals against “unfair competition”. BLOOMBERG
