The European Commission is reportedly preparing to introduce tariffs on plug-in hybrid electric vehicles (PHEVs) imported from China, in response to what officials see as an exploitation of existing incentives for zero-emission vehicles. According to a report in Germany’s Handelsblatt, Brussels officials believe certain PHEV models built in China are benefiting from the European Union’s tariff exemptions for electric vehicles, despite relying on internal-combustion engines for a substantial share of their driving range.
Under the proposal, the Commission would apply import duties to Chinese-manufactured plug-in hybrids that currently enter the EU duty-free by qualifying as electric vehicles. Among the models targeted is the BYD Dolphin G DM-i, which combines an electric powertrain with a small gasoline engine and registers as a zero-emission vehicle under EU rules even though it can operate on fuel over extended distances.
The move follows concerns among European automakers that China’s fleet of PHEVs could flood the market at competitive prices, leveraging government subsidies and avoiding usual customs duties. Industry representatives in Brussels have argued that widespread imports of such hybrids could undercut locally produced cars and undermine investments in full electric-vehicle production across Europe.
By closing what it calls an “EV loophole,” the Commission aims to ensure that tariff relief is more narrowly focused on vehicles capable of operating with minimal or no emissions over a significant driving profile. The exact level of the proposed duties has not been disclosed, and the initiative is expected to be subject to further analysis and a public consultation phase before formal adoption.
If enacted, the tariffs could reshape the competitive landscape for automakers in Europe, potentially leading to adjustments in pricing strategies, supply chains, and model offerings. Chinese OEMs would likely reassess their export plans, while European manufacturers may gain relief from price pressures generated by lower-cost imports. Brussels has not yet confirmed the timeline for implementation, but the issue is expected to feature prominently in upcoming trade discussions.
Source: Automotive News Europe: https://www.autonews.com/ev/ane-eu-prepares-phev-tariffs-china-imports-0619/
