EVwire brief: The European Commission is preparing to extend its anti-subsidy tariffs to plug-in hybrids (PHEVs) imported from China, closing the loophole that has so far kept the vehicles out of the extra duties on Chinese EVs. The move was initially reported by Handelsblatt, which noted that the duties could be rolled out in weeks.
Chinese plug-in hybrids currently pay only the standard 10% import tariff, so companiesl ike BYD and MG leaned into them to dodge the region’s steeper EV duties. It worked. BYD became Germany's best-selling plug-in hybrid brand for the first time in May 2026, with around 70% of the automaker’s German registrations being hybrids rather than pure EVs.
BYD’s PHEV offerings tend to be very competitive in features
BYD logged 4,290 PHEV registrations in Germany in May, led by the compact Atto 2 DM-i at 2,113, ahead of the Seal U DM-i and the Seal 6 DM-i Touring, with the new Dolphin G DM-i.
The EU's extra tariffs on Chinese battery-electric vehicles took effect on 31 October 2024, after an investigation found that Chinese state subsidies were distorting competition. Those duties stack on the standard 10% import rate and vary by maker: BYD pays an extra 17% for 27% in total, Geely 18.8% for 28.8%, and SAIC, MG's parent, the steepest at 35.3% for 45.3%.
BYD’s PHEV offerings also tend to be affordable, such as the Dolphin G DM-i
Context:
Any new hybrid duties would be set per manufacturer but likely run lower than the EV tariffs, since the battery is a smaller share of a plug-in hybrid's value. An anti-subsidy investigation is reportedly already underway, and EU leaders were set to weigh the move at this week's summit, though the outcome is unclear. Germany, which fought the EV tariffs, is not opposing the initiative this time.
The European Commission had denied any plan for hybrid tariffs as recently as January. Per Handelsblatt, it now intends to impose countervailing duties on Chinese hybrids within weeks.
Source: electrive, Handelsblatt
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