On July 28, Volkswagen Group clarified media reports claiming that its CEO, Oliver Blume, had called on the European Union to impose additional tariffs on Chinese-made plug-in hybrid electric vehicles (PHEVs). Volkswagen stated that Blume did not explicitly advocate for new tariffs; rather, during the company’s first-half 2026 earnings call, he emphasized the need for a comprehensive evaluation of all potential measures to ensure a level playing field between Europe and other regions. Blume noted that should the EU decide in the future to impose tariffs on Chinese PHEVs, such duties—aimed at maintaining healthy trade relations with China—should not exceed the levels already applied to battery electric vehicles (BEVs). Currently, the EU has imposed countervailing duties on Chinese BEVs: SAIC Motor faces an additional 35.3%, Geely 18.8%, and BYD 17%, on top of the standard 10% import tariff, resulting in combined rates as high as 45.3%. In contrast, PHEVs have not yet been subjected to these additional tariffs. Data shows that in the first half of 2024, Chinese brands accounted for more than one-third of new PHEV sales in Europe—a record high—and represented 11% of total new vehicle sales by Chinese automakers in the European market. Companies including BYD, Chery, MG (SAIC), and Leapmotor are accelerating their rollout of PHEV models in Europe to expand market share ahead of any potential tariff measures. Blume also expressed support for Chinese automakers establishing localized production in Europe as one viable path toward fostering fair trade.