Chinese automakers BYD and SAIC are significantly boosting sales of hybrid and combustion-engine vehicles in Europe as electric vehicle (EV) momentum stalls under the weight of EU-imposed tariffs and shifting consumer demand.
Chinese Car Registrations Hit Record High in Europe
According to Dataforce, Chinese-brand car registrations in Europe surpassed 150,000 units in the first quarter of 2025—a new record—with the monthly total peaking in March. However, EVs accounted for just 30 percent of those registrations, the lowest share since early 2020.
The shift marks a strategic pivot for Chinese automakers, which had previously focused on EVs to align with the EU’s carbon-reduction targets. But with the European Union raising import tariffs on Chinese EVs—up to 45 percent in SAIC’s case—companies are now turning to hybrids and traditional combustion-engine models to maintain their presence.
SAIC’s MG and BYD Drive Hybrid Surge
SAIC’s MG brand saw registrations of hybrid, plug-in hybrid, and internal combustion engine (ICE) vehicles more than double in the EU during Q1, hitting nearly 47,000 units. In contrast, its EV sales dropped by half over the same period.
In specific markets:
- In Spain, MG’s non-EV sales more than doubled.
- In France, sales rose from negligible to over 5,500 units.
- In Italy, registrations increased by 57 percent.
Meanwhile, BYD, long known for its EVs, is now seeing increased demand for its plug-in hybrids across Europe. Speaking at an event in Stuttgart, BYD’s regional head Maria Grazia Davino confirmed the company is embracing a two-pronged strategy with both electric and hybrid models.
Tariffs, Market Trends Fuel the Pivot
Experts point to more than just tariffs behind the trend. Benjamin Kibies, senior automotive analyst at Dataforce, noted that European consumers themselves are increasingly favoring hybrids over pure EVs due to affordability, range concerns, and charging infrastructure gaps.
“The Chinese have accelerated and intensified their efforts to introduce other fuel types,” Kibies said. “Tariffs are part of the puzzle, but also a slower EV uptake.”
The policy shift by the EU, designed to address unfair advantages linked to Chinese EV subsidies, may have hindered China’s EV market ambitions, but it hasn’t stopped overall growth. In fact, Chinese brands reached a 5.2 percent share of the total European auto market in March—their highest to date.
BYD Eyes Local Production to Bypass Tariffs
To offset the impact of import duties, BYD is building new factories in Hungary and Turkey for local EV production and is evaluating a third European site. The company is also expanding its dealer network but remains cautious on price strategy.
“We have no interest in destroying ourselves and the industry by initiating the pricing spiral that goes, goes down,” Davino said.
Hybrid Growth May Undermine EU Green Goals
While the EU’s tariffs may succeed in slowing Chinese EV dominance, they could also have the unintended consequence of stalling overall EV adoption. With consumers and manufacturers pivoting toward hybrids and ICEs, some analysts warn the region’s environmental goals may be harder to meet.
As Chinese automakers adapt, European competitors like Volkswagen Group and Stellantis must now defend their share across all drivetrain segments—not just EVs.
