Chinese automakers are significantly increasing hybrid car exports to the European Union following the implementation of new tariffs on electric vehicles.
Since late October, the EU has imposed tariffs of up to 45.3% on Chinese electric vehicles, prompting a surge in hybrid exports.
From July to October, hybrid car exports from China to Europe have more than tripled, reaching 65,800 units.
Analyst Murtuza Ali from Counterpoint Research highlighted that Chinese manufacturers are turning to plug-in hybrid electric vehicles (PHEVs) to circumvent the EU tariffs on battery electric vehicles (BEVs).
Ali forecasts a potential 20% increase in hybrid exports from China to Europe this year, with even faster growth expected next year.
In the third quarter, hybrids accounted for 18% of China's total car exports to Europe, up from 9% in the first quarter, while BEV exports decreased from 62% to 58%.
The EU's tariff measures are a response to perceived unfair subsidies that have led to excess production capacity of 3 million electric vehicles annually.
This move has garnered support from Turkey, the USA, and Canada.