Beyond EU tariffs: How China-origin vehicles continue to grow in Europe
Following an anti-subsidy investigation, the European Commission imposed provisional countervailing duties on China-built Battery Electric Vehicles (BEVs) in July 2024, before confirming manufacturer-specific duties for a five-year period starting October 30, 2024. These rates range from 7.8% for Tesla’s Shanghai production to 35.3% for SAIC, while all other cooperating smaller manufacturers are subject to a standard 20.7% rate. These individual duties sit on top of the EU’s existing 10% base car import tariff. Crucially, Conventional Hybrids and Plug-in Hybrids (PHEVs) are excluded, as the measures apply only to BEVs.
With almost 2 years having passed since the definitive rates took effect, this is an appropriate point to take a brief look at their performance and the resulting market impacts.
GlobalData’s Light Vehicle (LV) registration data indicates that Chinese-origin vehicles have continued to gain traction in Europe despite the tariffs. Instead of slowing growth, the measures appear to have reshaped the composition of supply, accelerating a shift away from the most tariff-exposed imports, toward untariffed powertrains, and increasingly toward local production plans within Europe.
In the EU, where the duties apply, registrations of models originating from China rose from 249k units in 2024 to 525k units in 2025, with a further 914k units projected for 2026, underlining the strength of Chinese-origin supply in the region.
Within BEVs, the trend has also proved more resilient than expected given the additional costs. Chinese-origin BEV registrations continued to rise after the tariffs were introduced, increasing by 1% year-on-year (YoY) in 2024 before surging by 65% YoY in 2025. This suggests that while the duties created clear pressure, they have not fundamentally derailed the segment’s overall growth trajectory.
Source: GlobalData
At the manufacturer level, SAIC, which faced the highest additional duty, saw EU registrations of its imported BEVs drop by 36% YoY in both 2024 and 2025, falling from 78k units in 2023 to 32k units in 2025. BYD, by contrast, faced a lower 17% duty, similar to the 20.7% rate facing many other smaller exporters, and was better positioned to absorb the additional cost while continuing to scale. As a result, its registrations climbed from 14k units in 2023 to 75k units in 2025, representing YoY increases of 147% in 2024 and 121% in 2025.
Taken together, the tariffs appear to have slightly redistributed growth between brands. However, with most Chinese-origin players still expanding, the data also highlights the underlying cost advantages that have enabled many to operate effectively in the higher-duty environment.
The clearest impact has been in hybrids. Since the EU measures do not cover Full Hybrids (FHEVs) or PHEVs, Chinese-origin volumes in these segments surged in 2025, with PHEV registrations rising by 537% YoY, while FHEV registrations increased by 292% YoY, with each powertrain exceeding 100k units.
Source: GlobalData
That shift is significant. PHEVs and FHEVs represented 14% of Chinese-origin registrations in 2023, prior to the provisional measures, rising to 18% in 2024 and then jumping to 41% in 2025. Combined, these two powertrains accounted for 58% of Chinese-origin vehicles’ incremental volume growth since 2023.
On a more positive note, the EU’s Electric Vehicle (EV) tariffs have also triggered structural supply chain shifts, helping to reduce the widespread undercapacity plaguing domestic manufacturing plants. To permanently eliminate tariff exposure, major Chinese automakers are increasingly shifting from exports to localized European production. For instance, Geely has entered a joint venture with Ford to share capacity at the underutilized Valencia facility, while BYD has heavily invested in Hungary with assembly slated to begin in late 2026, and Chery has partnered with EV Motors to revive a former Nissan plant in Spain under the Ebro brand. By compelling Chinese firms to build within the single market rather than export into it, the measures may help secure vital industrial jobs and attract long-term capital investments, even as competitive pressure intensifies.
However, while tariffs can raise import costs and encourage localization, they do not, on their own, make European automakers more competitive, nor do they automatically deliver affordable mass-market EVs or create scale in domestic supply chains. Essentially, they are a defensive tool.
Overall, GlobalData figures suggest that the EU’s tariffs have been partially effective, but with clear limits. Although they have changed the economics of exporting China-built BEVs into Europe, they have not prevented Chinese-origin vehicles from gaining share. Instead, they have redirected growth toward hybrids and accelerated plans for local production.
The EU is now adjusting course. Through initiatives such as the Industrial Accelerator Act, it has signaled a shift beyond leaky trade barriers toward “Made in Europe” local-content requirements, tighter conditions on foreign investment, and phased-in battery local-content rules from 2027. Such measures will place significant pressure on Chinese automakers to further localize their manufacturing within Europe or risk losing their competitive edge in the region.
Josef Mcdonald, Research Assistant, Research and Analysis