Imported Price War BYD Steps Up Its Game in the Price War Over Hybrid Cars

According to industry expert Ferdinand Dudenhöffer, Chinese automaker BYD is intensifying price competition in the plug-in hybrid segment on the German market ...

According to Dudenhöffer, BYD is exerting a twofold price pressure on the hybrid car market in Germany. On the one hand, this is due to low list prices, and on the other, to the highest discounts. Dudenhöffer interprets this as the importation of the price war from China. As is well known, fierce discount competition has been raging there for some time due to low demand. And BYD sold just over one million vehicles in the first half of 2026—about 40 percent fewer than a year earlier. The poor sales in China are naturally weighing on the company, and at the same time, BYD is opening the floodgates for massive exports. Incidentally, the manufacturer now holds the top spots in Germany for new registrations of these hybrid vehicles. In July, the Chinese company achieved a 10.7 percent market share in this segment, placing it in fourth place. And in May, the BYD Group even briefly took first place in registrations—ahead of VW, Audi, BMW, and Mercedes-Benz.

Politician Calls for Tariffs Equal to Those for Purely Electric Cars

According to the report, an average discount of just under 20 percent was offered on the 15 best-selling plug-in hybrids in August. However, car buyers paid even less for the two BYD models in the ranking, as the discounts amounted to 27.5 and 31.8 percent, respectively, according to Dudenhöffer. By comparison, in March, the average discounts on hybrids were still 18.2 percent. The figures are based, among other things, on the institute’s research among online car dealers and data from the Federal Motor Transport Authority. And Federal Environment Minister Carsten Schneider had only recently called for tariffs on plug-in hybrids from Chinese manufacturers. He also urged a so-called “level playing field” with China, though he noted that we are still far from achieving this, if only because of the massive undervaluation of the Chinese currency. Compensatory tariffs already exist for purely battery-electric cars, however. But not yet for Chinese plug-in hybrids. That must change! Ideally with tariffs at a comparable level to those for purely electric vehicles.

Government Subsidies for Electric Cars Are Counterproductive

According to the analysis, however, discounts on purely electric cars and internal combustion engine vehicles fell slightly in August. For the 25 best-selling electric models, the institute calculated average discounts of 17.4 percent in August. That is about 0.2 percentage points less than in July. For the most popular internal combustion engine vehicles, the average discount was 18.9 percent (down 0.5 points). The difference in purchase price between the two types of powertrains also declined slightly, according to the report. However, it remained above 2,000 euros (2.320 $). In December 2025, the price difference had still been 1,328 euros (1.540,48 $. Dudenhöffer blames this on government subsidies for electric cars. In his opinion, these subsidies are counterproductive: “Car manufacturers are simply using the government subsidy to cut their discounts on electric cars!”

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