More than a month after the European Union's steep import tariffs on electric vehicles came into effect, Chinese automakers are turning to hybrid vehicles to test the limits of the program.
EU tariffs The targets for Chinese electric car makers do not apply to hybrids – cars that run on a mix of gasoline and electricity.
This has led Chinese automakers such as BYD, Geely and SAIC to increase exports of hybrid vehicles to Europe and plan to launch more models for the key market.
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In the third quarter, exports of plug-in hybrids and conventional hybrids accounted for 18% of China's total car sales to Europe. That's double the 9% share in the first quarter.
At the same time, the proportion of electric vehicle shipments fell to 58% from 62% in the same period.
Counterpoint Research analyst Murtuza Ali said: “This increase is due to Chinese OEMs switching to PHEV (plug-in hybrid electric vehicles) to circumvent EU restrictions on BEV (battery-powered electric vehicles) imported from China. new tariffs on cars).
He predicts that China's hybrid vehicle exports to Europe will grow by 20% this year and even faster next year.
New product launch, production transfer
The trend could see Chinese carmakers disrupt the European plug-in hybrid market as they meet growing demand for affordable cars Has better fuel economy Amid rising inflation. European and Japanese companies dominate the market so far.
For example, BYD, China's largest electric car maker, is launching its first plug-in hybrid model, the Seal U DM-i, to compete with Volkswagen and Toyota in Europe.
The model starts at 35,900 euros ($37,700), which is 700 euros less than Volkswagen's best-selling PHEV model, the Tiguan, and 10 percent cheaper than Toyota's C-HR PHEV.
Meanwhile, Geely, China's second-largest carmaker by sales, launched a new plug-in hybrid in Europe under its Lynk & Co brand last month.
State-owned enterprise SAIC Motor faces a top surcharge of 35.3% on exports of electric vehicles to the EU. The group has also said it plans to launch products equipped with various power systems into the European market.
Some manufacturers are also moving production and assembly to Europe to reduce tariff costs.
BYD is considering producing both electric and hybrid vehicles at its Hungarian plant, according to Chinese state-run media outlet China Automotive News.
increasingly popular
Hybrids are growing in popularity around the world as buyers view them as an affordable compromise between all-combustion cars and all-electric vehicles.
In China, hybrid cars drive sales at the country's top EV maker Set a new high this year.
Data from the China Passenger Car Association shows that hybrid vehicle exports to Europe also more than tripled from July to October compared with the same period last year, reaching 65,800 units, reversing the trend of declining sales earlier this year and until 2023.
“Global automakers have recently increased the launch of electric hybrid models in global markets, which is in line with consumer demand and purchasing trends,” automaker Geely told Reuters.
Yale Zhang, managing director of Automotive Foresight, said: “As Chinese automakers bring more affordable options to Europe, appealing to cost-conscious consumers, this segment may see greater growth potential. “
But experts warn that Chinese companies may act more cautiously to avoid triggering a new round of EU tariffs, given that the tariffs are part of a larger EU effort to stem the flow of cheap Chinese products.
“If BYD brings Qin Plus to Europe for 20,000 euros, I believe it will trigger another earthquake,” Zhang said, referring to the automaker's hybrid sedan Launched early this year.
- Vishakha Saxena Additional Editor, Reuters
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