VW Seeks Higher EU Tariffs on Chinese PHEVs Amidst Sales Decline




Volkswagen Group is advocating for the European Union to impose elevated import tariffs on plug-in hybrid electric vehicles originating from China, emphasizing the need for prompt action. This plea comes as the German automotive giant faces mounting pressure in the European market due to the rising dominance of Chinese PHEVs.
The call for stricter tariffs is a direct response to a dramatic change in the European sales landscape. The Volkswagen Tiguan, which previously held the top spot as Europe's best-selling PHEV, has been displaced by three Chinese competitors. Data from the first half of the year reveals that the BYD Seal U, BYD Atto 2, and Jaecoo 7 have secured the top three positions, pushing the Tiguan down to fourth place.
Volkswagen Group CEO, Oliver Blume, highlighted the urgency of the situation during a recent earnings call, stating that the company has "no time to lose" in addressing this competitive imbalance. The shift in market dynamics is not isolated to the Tiguan; Chinese brands collectively captured 28.3% of the European PHEV market in the first half of the year, signaling a broader challenge for traditional European automakers.
This development mirrors earlier actions taken by the EU against Chinese electric vehicles (EVs), where tariffs were increased due to concerns over unfair competitive advantages stemming from significant subsidies provided by the Chinese government. The current tariffs on Chinese-built EVs can reach up to 35% in addition to the standard 10% import duty, and it is anticipated that similar measures will soon be applied to plug-in hybrids.
European automakers are increasingly relying on PHEVs to meet stringent emissions regulations. However, Blume argues that the playing field is currently uneven for PHEVs, unlike the EV sector where he believes European brands remain competitive on pricing. He stressed that while EV regulations are proving effective, the same cannot be said for plug-in hybrids.
Reports from German media, such as Handelsblatt, indicate that the EU is indeed considering additional tariffs on Chinese PHEVs, although the specific details regarding their timing and magnitude are yet to be determined. This move could significantly impact the European automotive market, where Chinese car brands have seen their sales double within a single year, now holding a 9.5% share of the overall market with nearly 686,000 deliveries.
The increasing market share of Chinese plug-in hybrids in Europe has prompted a robust response from established manufacturers like Volkswagen. The company's push for higher import tariffs reflects a broader industry concern about fair competition and the need for policy adjustments to support domestic production and sales in a rapidly evolving automotive landscape. The outcome of these discussions will undoubtedly shape the future of the European PHEV market.