The EU's anti-dumping duties on battery electric vehicles (BEV) imported from China are reshaping the European car market, accelerating the penetration of Chinese plug-in hybrid electric vehicles (PHEV).
Such changes were already anticipated when the EU decided to impose anti-dumping tariffs on Chinese BEV imports last year.
BYD's Seal U, which has only been on the European market for less than a year, was number one in PHEV sales in Europe in March 2025. In terms of overall PHEV sales in the first quarter of 2025, BYD, China's leading new energy vehicle vendor, was in fourth place in Europe.
BYD's core strength has been its PHEVs, which have seen better sales than its BEVs over the years.
Supply chain sources said that if such a trend continues, Chinese cars will quickly penetrate the European PHEV market, with other types of car imports from China also standing a good chance of gaining momentum in Europe.
Tricky tariffs policy
If Chinese PHEVs grow too fast in the European market, the EU may impose anti-dumping tariffs on them. After all, China's home-grown PHEV and BEV vendors have received long-term financial support from the Chinese government. For instance, BYD has been a major recipient of subsidies from the Chinese government.
But if the EU imposes tariffs on PHEVs from China, it may further undermine the sales of European cars in the Chinese market. The EU is taking action to protect Europe's automobile industry and market, but Germany's automaking giants Volkswagen, BMW, and Mercedes-Benz have all increased their investments in China to show their commitments to the Chinese market.
German carmakers are facing a dilemma: the more they invest in China, the more they risk losing. Lying ahead is a long and bumpy road.
European cars lagging in vehicle electrification
Chinese carmakers are outracing their European competitors in vehicle electrification.
The automotive industry is heading towards electrical/electrification (E/E) architectures -- an irreversible trend that all carmakers are embracing regardless of the power systems they are adopting for their cars, be it BEVs, PHEVs, or fuel vehicles.
BYD's strong sales not only demonstrate the strength of China's new energy vehicles but also highlight a key selling point of cars from homegrown Chinese vendors -- the new tech experience of their smart cockpits. Mainstream automakers in other countries have been lagging in smart cockpit development.
Media reports have quoted Dataforce statistics as showing that in Europe's PHEV market, BYD's Seal U DM-i sales exceeded 6,000 units in March, surpassing Geely's Volvo XC60. BYD, riding on its growing popularity, reportedly is planning to accelerate the launch of new PHEV models in Europe.
Article edited by Jack Wu
