Key facts
- A German state politician, Sebastian Lechner, is advocating for EU import tariffs on Chinese hybrid cars.
- Lechner argues that Chinese automakers benefit from subsidies, creating unfair competition.
- The European Union is reportedly preparing to extend tariffs to Chinese plug-in hybrid electric vehicles (PHEVs).
- Existing tariffs on Chinese battery electric vehicles (BEVs) were implemented in late 2024.
- The move aims to protect European automakers from subsidized Chinese competition.
A German state politician is urging the European Union to quickly implement import tariffs on Chinese hybrid cars, citing concerns over subsidized competition. Sebastian Lechner, the CDU state chairman of Lower Saxony, stated that approximately 60% of the market share held by Chinese products abroad is due to subsidies, which he described as a distortion of competition.
Lechner's call comes as the European Union is reportedly preparing to extend tariffs to Chinese-made plug-in hybrid electric vehicles (PHEVs). This move would broaden the bloc's trade defense measures, which previously focused primarily on battery electric vehicles (BEVs). Tariffs on Chinese BEVs were imposed in late 2024 following an anti-subsidy investigation launched by the European Commission in October 2023, with duties ranging from 7.8% to over 35% depending on the manufacturer.
The expansion of tariffs to hybrids is seen as a response to the rapid growth of Chinese PHEV sales in Europe, which could allow manufacturers to circumvent existing BEV-focused duties. European automakers, particularly in Germany, France, and Italy, have faced increasing pressure from Chinese brands like BYD, SAIC, and Geely, which have aggressively entered the market with competitively priced electrified vehicles. The EU's actions are intended to shield its domestic industry from what officials describe as heavily subsidized Chinese competition.