Jakarta – Chinese manufacturers are starting to export hybrid cars to Europe in large numbers. This is done to circumvent the import tariff policy on Chinese-made electric cars in the Blue Continent.
Chinese car manufacturers are targeting to export more hybrid cars to Europe. Not only that, the manufacturers also aim to export more hybrid car models to the Blue Continent. This step was taken by Chinese manufacturers to ‘outsmart’ the import tariff scheme for electric cars in Europe.
Quoted from Reuters, as is known, Europe has recently imposed high import tariffs on electric cars from China. The reason is that without high import tariffs, Chinese cars are increasingly flooding Europe. But these import tariffs do not apply to hybrid cars. In this way, renowned Chinese manufacturers, such as BYD, are opening new opportunities for business expansion in the region, according to analysts. Not only BYD, but other manufacturers are also starting to shift production and assembly to Europe to reduce costs related to the import tariffs.
“This increase is driven by Chinese OEMs switching to PHEVs (plug-in hybrids) as a way to avoid the new EU tariffs on imports of BEVs (battery electric vehicles) from China,” said Murtuza Ali, an analyst at Counterpoint Research. Murtuza estimates that exports of hybrid cars from China to Europe will grow by 20 percent this year and even faster next year. The European Union has imposed tariffs of up to 45.3 percent on imports of Chinese electric cars, which took effect at the end of October. This measure is an effort to combat subsidies deemed unfair and advantageous to Chinese manufacturers.
On the other hand, car sales in China are experiencing a slowdown due to the declining local economic conditions. As a result, car manufacturers are starting to shift their strategies to compete in the European market with more hybrid cars.
Hybrid cars, which combine a conventional engine and a battery, are becoming increasingly popular because they are considered more affordable than fully electric cars. From July to October, hybrid car exports to Europe also surged. The increase was even threefold, reaching 65,800 units compared to the same period the previous year, as recorded in data from the China Passenger Car Association.
China Starts Competing to Export Hybrid Cars
