The CEO Of Volkswagen Demands Higher Taxes On Plug-In Hybrids Made In China.

During a conference where Volkswagen Group’s financial results for the first half of the year were announced, CEO Oliver Blume called on the European Union to quickly impose more tariffs on plug-in hybrid electric vehicles (PHEVs) made in China.

Blume observed that while the existing tariffs on Chinese battery electric vehicles (BEVs) have demonstrated initial effectiveness, they do not currently extend to plug-in hybrid electric vehicles (PHEVs). Consequently, he recommended applying a similar regulatory framework to PHEVs, specifically proposing a 35% duty in addition to the standard 10% import levy. Blume emphasized that this measure is essential to ensure a competitive level playing field within the European automotive market.

In light of intensified competition from Chinese automotive manufacturers and the impact of elevated United States tariffs, Volkswagen has revised its 2026 revenue projections. Furthermore, CEO Oliver Blume has urged the European Union to accelerate the implementation of comprehensive safeguards for the automotive sector. These proposed measures include the promotion of a Made in Europe policy, the establishment of local content requirements, the provision of state support, and the introduction of incentives tied to regional production. Collectively, these initiatives are intended to fortify supply chains and mitigate reliance on imports.

Chinese automakers now hold 30% of the European PHEV market, with BYD and Jaecoo models outselling the Volkswagen Tiguan. As manufacturers rely on PHEVs to meet EU emission targets, reports indicate the EU is considering new tariffs on Chinese-imported hybrids.

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