The European Commission is preparing countervailing duties on Chinese plug-in hybrid imports, according to German newspaper Handelsblatt. These measures extend existing tariffs on battery-electric vehicles (BEVs) to address unfair state subsidies.

Chinese manufacturers like BYD increased exports of plug-in hybrids (PHEVs) to bypass current BEV-specific duties. This strategy fueled significant sales growth for BYD across European markets.

The proposed tariffs aim to close the current regulatory gap between BEVs and hybrids. While specific duty levels remain unannounced, the Commission expects to set manufacturer-specific rates.