BYD Gains Market Share in Germany, Sparks Tariff Debate

BYD is increasing price competition in the German plug-in hybrid market, according to a study by the Center Automotive Research (CAR). The Chinese automaker is applying price pressure through low list prices and high discounts. BYD sold approximately one million vehicles in the first half of 2026, a decrease of around 40 percent year-over-year.

BYD reached a 10.7 percent market share in the plug-in hybrid segment in July, placing it fourth. In May, BYD briefly held the top position in plug-in hybrid registrations, surpassing Volkswagen, Audi, BMW, and Mercedes-Benz. In August, the average discount on the 15 best-selling plug-in hybrids was nearly 20 percent, while BYD models offered discounts of 27.5 and 31.8 percent.

German Environment Minister Carsten Schneider has called for tariffs on plug-in hybrids from Chinese manufacturers, citing unfair competition due to currency undervaluation. He proposes parity in tariffs between plug-in hybrids and fully electric vehicles. Discounts on fully electric and combustion engine vehicles slightly decreased in August.

The price difference between electric and combustion engine vehicles has narrowed, but remains above 2,000 euros. The analysis attributes this to state subsidies for electric vehicles, which are reportedly used by automakers to reduce discounts.