BYD vs. German Manufacturers: Hybrid Prices Under Pressure

For the best-selling combustion models, the average reduction was 18.9 percent, 0.5 percentage points below the previous month's figure. In the preceding months, the Center Automotive Research had already pointed to an aggressive pricing strategy by Chinese providers in the hybrid segment.

Plug-in Hybrids Under Price Pressure

According to CAR, BYD benefits in Europe from a strong production base in China and lower unit costs. With growing unit numbers and an expanding model range in the hybrid segment, pressure on European manufacturers would continue to increase, it said.

German manufacturers are meanwhile trying to counter with their own hybrid models and electric cars. Volkswagen, BMW, and Audi have announced or launched new models in recent months to make up ground in the fiercely contested segment of partially electrified vehicles.

Call for Aligned Tariffs

Federal Economics Minister Carsten Schneider meanwhile spoke out in favor of aligning tariffs. "Das muss sich ändern: Ich bin dafür, für chinesische Plug-in-Fahrzeuge vergleichbare Zölle einzuführen wie für vollelektrische Fahrzeuge," said Schneider. This would extend existing EU tariffs on pure electric cars from China to plug-in hybrids.

From the perspective of CAR expert Dudenhöffer, the price spiral in hybrids is a clear signal to European policymakers. Competitive conditions in the European market must be designed in such a way that European manufacturers have a fair chance, without calling for protectionist measures.

European Manufacturers Under Pressure

The European Commission already introduced additional tariffs on electric cars from China in 2024. An extension to plug-in hybrids has been under discussion for months but has not yet been decided. The German government had so far taken a cautious stance on the issue.

Experts expect BYD and other Chinese manufacturers to continue expanding their commitment in Europe. This includes plans for their own production sites in Europe in order to circumvent possible tariffs and shorten delivery times. A BYD plant is currently under construction in Hungary.

Outlook on the European Market

For consumers in Germany, the intensified competition could initially mean falling prices in the hybrid segment. At the same time, industry representatives warn that a sustained price decline could weaken the margins and investments of European manufacturers.

The CAR analysis is published monthly and evaluates list prices and actual purchase prices for new cars in Germany. It is considered one of the most important indicators of price developments in the German automotive market.