China's Auto Offensive in Europe: Fast Lane for Plug-in Hybrids

Chinese automobile manufacturers sold more vehicles in Europe in August than the brands Renault and Audi, driven by a boom in plug-in hybrid sales. Among the top sellers in this category were models from BYD, Jaecoo, and MG, according to recent data from JATO Dynamics. Although the Tesla Model Y remains the most popular battery electric vehicle (BEV) in Europe, its sales dropped by 37 percent compared to the previous year. This occurred despite an overall increase in BEV sales, as per the analysis by the market research firm. Chinese manufacturers have significantly increased their exports of plug-in hybrid and hybrid vehicles to the EU and plan to produce more models locally. This is intended to reduce the impact of European import tariffs on Chinese electric vehicles. PHEVs, which run on both gasoline and electricity, are gaining popularity as a cost-effective alternative to pure combustion and electric cars. In August, Chinese automakers reached a combined market share of 5.5 percent with over 43,500 sales, representing a 121 percent increase compared to the previous year. This surpasses Audi with 41,300 and Renault with 37,800 vehicles sold. The sale of PHEVs in 28 European countries rose by 59 percent to nearly 84,000 units, with Chinese brands quadrupling their sales to 11,000. Among the ten best-selling PHEVs were BYD's Seal U, Chery's Jaecoo J7, and SAIC's MG HS. Demand for BEVs was strong in August, yet analyst Felipe Munoz of JATO Dynamics notes that the 27 percent increase is less impressive when considering the strong promotion of these vehicles. BYD announced at the end of last year that it would sell PHEVs in Europe and now plans to manufacture all electric vehicles intended for the European market locally by 2028.