How do Chinese manufacturers do to win the game in Europe?

Chinese manufacturers turn on electric to maintain their presence on the market. Therefore, What is their new strategy?

The European Union imposes high customs duties on imports of Chinese electric vehicles. Meanwhile, pushing Chinese brands to find other parades to penetrate the European market. For example, Sales of their models explode. however, this development could slow down European climatic objectives, because their vehicles are still emitting how do chinese manufacturers do CO2.

The boom of Chinese rechargeable hybrids

Recently, we observe A notable turn in the strategies of Chinese car manufacturers. Moreover, With the entry into force of the customs duties of the European Union which reach Up to 35.3 % (In addition to the usual 10 %), purely electric car exports become much more expensive. Meanwhile, For Byd. for example, this additional cost amounts to an additional 17 %, which can represent several thousand euros per vehicle, cutting up on the margins or increasing prices for consumers. Geely undergoes a rate of 18.8 %, while other Chinese players face variable, but always penalizing levels.

Instead of falling back, these Chinese brands opt for a different approach. Instead of exporting 100% electric cars. These opt for rechargeable hybrid models which have the particularity of not undergoing the same taxation. This is a solution that seems to pay, judging by the last how do chinese manufacturers do figures. Chez BYDregistrations of rechargeable hybrids in Europe jumped to 20. 000 units just in the first half of 2025or more than three times the total of the year 2024. This spectacular increase illustrates perfectly how an adjustment can transform a constraint into an opportunity. And it’s not over because the group plans to launch other models adapted to the European market in the. coming months. The Union was aimed at protecting its automotive industry in the face of Chinese, subsidized and ultra-competitive competition. However, the decisions taken did not have the expected effect.

Towards a local production to bypass obstacles

The Chinese do not stop there. already prepare the next step: Install factories in Europe To avoid customs duties. Byd, in particular, advances on this front. The group has announced projects in Hungary. Turkey which emerges as an ideal hub because the vehicles produced there benefit from preferential access how do chinese manufacturers do to the European market, with reduced to any cases, thanks to trade agreements. This location not only makes it possible to dodge taxes. but also to respond faster to local requests, by adapting models to European standards and tastes. Chinese manufacturers also have their interest in German sites belonging to Volkswagen. At the start of the year. we learned via Reuters that Chinese officials and manufacturers scrutinize the factories that VW wishes to close or convert, like those of Dresden and Osnabrück. These underused facilities could be bought or rented to produce Chinese vehicles on European soil. This would represent a master stroke because these foreign manufacturers could manufacture locally to avoid taxes. while benefiting from existing expertise and infrastructure.

This responsiveness of the Chinese highlights their agility in the face of regulatory changes. While Europeans sometimes struggle to adapt. The actors of the Middle Empire adjust their plans in how do chinese manufacturers do the blink of an eyeas we saw with the transition to hybrids. In addition. with the election of Donald Trump and his advertisements on automotive imports, Europeans could find themselves in a similar position, forced to find fast parades to exist on American soil. The market implications are large. Chinese local production could stimulate employment in certain regionsbut also intensify competition, forcing traditional brands to innovate more. The automotive industry is a chess game where each movement counts. and for the moment, the Chinese seem to have one step ahead.