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Recent tax implementations in Europe demand that car manufacturers disclose detailed financial information to avoid hefty tariffs on EV imports. The penalties can reach as high as 55.3% for some companies that do not comply with the regulations. In comparison, companies like Tesla face a 28% tax while other Chinese manufacturers like BYD experience tariffs up to 50%.
Despite vocal opposition from Chinese automakers against these tariffs, they have devised clever strategies to mitigate their impact. The EU's distinguishing line between regular EVs and hybrids has presented a unique opportunity for Chinese companies. Notably, no tariffs apply to plug-in hybrids or other hybrid vehicles from Chinese brands, leading to a surge in the export of such vehicles to Europe.