Volkswagen CEO Urges EU to Impose Tariffs on Chinese Plug-in Hybrid Cars

On July 24, during the Volkswagen Group’s first-half earnings call, CEO Oliver Blume urged the European Union to swiftly impose higher tariffs on Chinese-made plug-in hybrid electric vehicles (PHEVs). He noted that the existing additional tariffs on Chinese battery electric vehicles (BEVs) have already shown initial effectiveness but do not yet cover PHEVs. Blume recommended applying the same approach used for BEVs—adding up to a 35% supplementary tariff on top of the standard 10% import duty. Blume stated this measure aims to create a level playing field in the European automotive market. Citing intense competition from Chinese automakers and high U.S. tariffs, Volkswagen has revised down its revenue forecast for 2026. He also called on the EU to accelerate broader protective measures for the automotive industry, including promoting a “Made in Europe” policy, setting local content requirements, offering government support, and implementing incentives tied to regional production—all aimed at strengthening supply chains and reducing reliance on imports. Data shows that in the first half of 2024, Chinese-brand PHEVs sold 208,368 units in Europe, capturing 27.3% of the European PHEV market. The top three best-selling PHEV models were all from Chinese brands: the BYD Seal U, BYD Atto 2, and Chery Jaecoo 7. Meanwhile, last year’s top-selling model, the Volkswagen Tiguan, has dropped to fourth place. PHEVs are a key tool for both Chinese and European automakers to meet the EU’s CO₂ emission reduction targets and enjoy tax incentives in several European countries. Earlier, on June 19, Germany’s Handelsblatt reported that the EU was considering imposing additional tariffs on Chinese-imported PHEVs.