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However, evidence suggests the strategy backfired spectacularly. Instead of establishing manufacturing facilities in Europe, many Chinese brands shifted focus toward plug-in hybrids and increased their sales in China and other markets, effectively bypassing the tariffs. The result was a significant boost in Chinese vehicle sales in Europe, soaring from around 408,000 units in 2024 to an estimated 700,000 in 2025—an increase of over 70% within just a year.
Furthermore, over the next few years, the landscape is expected to change. While currently only about 20,000 of these vehicles are assembled in Europe, that number is projected to grow rapidly as Chinese companies establish local production lines to circumvent tariffs altogether.