German state leader demands tariffs on Chinese hybrid cars

Stephan Weil, the Minister-President of Lower Saxony, is urging the European Union to impose import duties on hybrid cars manufactured in China. Weil, a Social Democratic politician, contends that the current situation, where only pure electric vehicles are subject to tariffs while hybrids are not, represents a significant "regulatory loophole."

In July, Weil formally communicated his concerns in a letter addressed to EU Commission President Ursula von der Leyen, German Chancellor Friedrich Merz, and Vice Chancellor Lars Klingbeil. He expressed alarm over Chinese manufacturers' aggressive market entry into the EU over the past two years, aiming to displace established European carmakers.

Weil, who also serves on the supervisory board of Volkswagen, warned that without swift action on tariffs, the European automotive industry's structures could be irrevocably damaged within the next few years. The EU already implemented tariffs on Chinese-made electric vehicles in 2024 following an anti-subsidy investigation that found Chinese government support gave these vehicles an unfair price advantage in the European market.

Volkswagen CEO Oliver Blume has echoed these concerns, noting the aggressive push of Chinese manufacturers into Europe and their rapid market share gains. Blume highlighted China's massive overcapacity, with export expectations exceeding ten million vehicles this year. He pointed out that Chinese prices are unsustainable with European production costs, especially as hybrid vehicles currently enter Germany tariff-free. Blume stated that in the second quarter, one in every three plug-in hybrids sold in Europe was manufactured by a Chinese company.