Europe is falling into another Chinese car trap

The EU has imposed temporary high tariffs on Chinese electric car imports, and it remains to be seen how this will affect market conditions in practice. But in the meantime, Europe fell into another big trap set by China, as European brands had to bet on plug-in hybrids (PHEVs) to deal more easily with the electrification of the industry. However, this technology creates more problems for manufacturers than it does for consumers.

A little over 10 years have passed since the process of moving to electric cars began. The established brands bet on a strategy where the first step should be hybrids, the second – plug-in hybrids, and the third – fully electric cars. However, China began to make significant inroads into the sector and European brands jumped over the second row.

So, at one time, the Asians sent consumers to a completely new world – the world of electric cars, which fell at one time. The lack of interest in these cars has forced companies to pull back on development and rely on PHEVs. But some were very late and had to catch up quickly.

Manufacturers such as Mercedes-Benz are pursuing a dual strategy by supporting plug-in hybrids using both gasoline and diesel. In addition to this, the battery capacity of their cars has been significantly increased and the PHEV models can now travel up to 150 km on electricity alone.

And this is just the new trap into which Europe has fallen.

China has already achieved the first of its big goals,

flooding the Old Continent with electric vehicles, which also led to the imposition of taxes. The next blow of the Asians comes directly with plug-in hybrids, which have been much more efficient than those of European companies.

BYD – one of the world’s largest manufacturers – has already announced that its PHEVs can travel over 2,000 km with a full tank of fuel and fully charged batteries, and some of its models travel up to 300 km in all-electric mode. And this is twice as much as European brands can do.

More or less than that – about 300 km, Renault 5 travels with fully charged batteries. However, this is a true electric car and these miles refer to its entry-level version with a smaller battery.

At the same time, European brands are trying to meet the Chinese challenge and are installing larger batteries or using more complex and expensive chemicals. In the first option, this means at least 300 kg more than the weight, and in the second –

significant price increases.

For now, the formula to offset the additional cost of more powerful batteries is to equip chargers on board that support high charging speeds so they can recharge in a longer time. The latest VW Tiguan is a prime example of this great development, but it’s only a matter of time before European manufacturers have to scramble to significantly improve PHEV autonomy. At the same time, Chinese brands are also developing.

And the trade dispute between China and Europe, the main part of which are tariffs, is taking on another dimension. The Asians managed to achieve a small success by agreeing with the EU authorities to reduce taxes for some of their companies. In October, the EU will decide whether the tariffs will remain permanently, with Europe divided into two camps on the issue.

Germany, for example, is firmly against tariffs because many German cars are made in China and sold in Europe, ie. he must also be obliged.

Authorities in Beijing have then launched their own investigation into products imported from the European Union, including pork, brandy, cheese, milk and cream. China’s Ministry of Commerce is also holding meetings with automakers and industry associations to discuss a possible increase in import taxes on gasoline vehicles with large engines – those with a displacement of more than 2.5 liters. Which directly affects the German manufacturers of high-end and sports cars – Audi, Porsche, Mercedes-Benz and BMW. And the most popular foreign market is certainly in China, with the export value of this type of vehicle for 2023 alone reaching 1.070 billion. euro.

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