In response to the European Union’s tariffs on Chinese-made electric vehicles (EVs), Chinese automakers such as BYD $002594.SZ and Chery $033100.KQ are increasing their sales of plug-in hybrid electric vehicles (PHEVs) in the European market. This shift aims to bypass the hefty import duties that have been levied on fully electric vehicles (BEVs) from China. With the growing presence of hybrid vehicles in Europe, Chinese manufacturers are adjusting their strategies to stay competitive in a market that is evolving rapidly.

Chinese automakers are actively discussing the potential acquisition of $VOW.DE plants in Germany, which the company plans to close due to their unprofitability. These discussions have implications for both the Chinese economy and the future of the European automotive industry. Considering Volkswagen's decision to reduce its capacities in Europe, the potential purchase of these plants carries strategic significance for both China and the European Union.