Why Europe Is Suddenly Full of Chinese Plug-In Hybrids

Photo by FMT

In May 2025, Chinese plug-in hybrid electric vehicle (PHEV) exports to Europe rose by an astonishing 600% compared to the same month last year.

What’s behind it? A gap in the EU’s tariff policy.

Last year, the European Union slapped tariffs of up to 45% on fully electric vehicles (EVs) from China. But plug-in hybrids — cars that combine a rechargeable battery with a gas engine — still only face a 10% import duty.

Chinese automakers jumped at the chance, shifting focus to hybrids and pushing aggressively into the European market.

The Numbers Are Staggering

In total, China exported 324,000 passenger plug-in hybrids in the first five months of 2025 — a nearly 140% increase over last year.

May alone saw exports worth US $1.42 billion, making PHEVs one of China’s top 20 export categories.

The shift isn’t just limited to Europe. Shipments of these cars to Southeast Asia rose 3,800%, to the Middle East by 1,600%, and to the UK and Turkey by over 770%.

Meanwhile, China’s exports of fully electric cars fell 8% in May, showing how hybrids are now the country’s main growth driver in global auto sales.

According to UBS, Chinese brands now hold 11% of the EV market in Europe, compared to 6% of the overall car market.

European Brands Can’t Compete on Price

One reason for China’s success? Price.

In the UK, a BMW X5 plug-in hybrid starts at over £66,000. By contrast, a Chinese-made MG HS PHEV sells for around £21,500 — about a third of the cost.

And it’s not just about cheap pricing. Analysts say Chinese carmakers can still turn a profit at these lower price points, giving them a major edge.

Chinese Cars Gain Market Share

According to UBS, Chinese brands now hold 11% of the EV market in Europe, compared to 6% of the overall car market.

Sales are rising fastest in the UK, Germany, France, Italy, and Spain — the five biggest markets in the EU.

More and more European drivers are choosing Chinese hybrids, often because they offer similar tech and performance at a far lower cost.

What Happens Next?

China’s success in Europe is catching attention — and creating tension.

Industry groups in the EU are already calling for tariffs on Chinese hybrids, not just full EVs. There’s also concern that this success could hurt local carmakers, who are struggling to match China’s speed and efficiency.

Some Chinese brands are now considering building factories inside Europe, a move that would let them bypass tariffs entirely.

How Europe responds could reshape the future of the global auto market.