Chinese EV Makers Shift to Plug-In Hybrids

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Chinese electric vehicle manufacturers such as BYD and Chery are increasing sales of plug-in hybrid vehicles (PHEVs) in the European Union to circumvent high tariffs on battery electric vehicles (BEVs). Since provisional EU tariffs on Chinese-made BEVs were introduced in July 2024, and fully implemented in November, PHEV sales by BYD and Chery have risen sharply. BYD sold 3,269 PHEVs and Chery 757 in March 2025, up from nearly zero in mid-2024. The EU imposed up to 45.3% tariffs on Chinese-made BEVs to curb an influx of cheaper models. BYD pays a 27% tariff on BEVs and 10% on PHEVs, prompting a strategic shift to promote hybrids. Reuters