CNBC's Phil LeBeau reports on news regarding how to deal with the growth of Chinese EVs.

Chinese electric vehicles (EVs) are gaining a larger share of the European market, causing concern among both automakers and lawmakers in the region. While the overall number of Chinese EVs sold remains relatively small, their growth rate is notable, prompting discussions about raising tariffs to limit imports. Some Chinese manufacturers, such as BYD, are shifting focus to plug-in hybrids, which face lower tariffs compared to pure EVs.

BYD has increased its brand presence in Europe through advertising and by targeting the premium segment. Meanwhile, European emission standards continue to drive up electric vehicle sales, while traditional gas and diesel vehicles see declining sales. Tesla, despite its manufacturing presence in Germany, has experienced a significant drop in sales across Europe, though it has seen some improvement in the UK. Consumer opinions on Tesla are mixed, with some citing concerns about the company's leadership.

China's EV market share grows in Europe, concerning auto and lawmakers

European automakers are struggling to figure out how to effectively deal with the explosive growth of Chinese EVs and Phil LeBeau joins us now with more. Hey, Phil. It's still at a small number in terms of pure EVs from China being sold in Europe, but it is growing and it is a concern for European automakers and for European lawmakers who are trying to figure out, well, look, if we jack up the tariffs on these vehicles, maybe we won't see as many imported. By the way, for a pure EV, the tariff can be up to 45 percent, which is why some like BYD, well, they're kind of shifting their plans. They're going more towards hybrids, often plug-in electric hybrids, where the tariff is only 10 percent. And BYD, it is making gains. I think what BYD are doing very well at the moment is they've been in the market in Europe for over a year. They've been doing a lot of advertising across Europe to raise their brand awareness. They've been pricing their vehicles very much at the premium high end at the moment with the current offering in Europe. So it does seem to be that the strategy is to make a lot of consumers in Europe aware of BYD. Look, the emission standards are still in force in Europe, which is why electric sales up more than 27 percent in terms of you're looking at the year-to-date gains through May. There you see plug-in hybrids. Not a surprise that gas and diesel down 22 percent. You might be asking yourself, well, what about Tesla has a plant in Germany? Doesn't it have a big presence in Europe? Well, yes, it does. But that presence has not been enough to slow down the decline in sales up or down 45.1 percent. When we were in Paris last month, we were out in front of the Tesla store and we asked a few people, what's hurting Tesla's brand over here? What do people think of Tesla? Here's what they had to say. I think long term, people are looking for a car that they want to drive, that they can take their family. And I think Tesla is one of the top brand, one of the top electric brands. And going forward, I think the Chinese have their competition and Tesla is their main competition. I'm not fond to the guy Elon Musk. It's not my type of opinion, you know, in political, it's not what I think, you know. And by the way, we did hear that from a number of people who said, look, I'm not crazy about his politics. That said, guys, Tesla is still, you know, the sales in Europe are worth noting the fact that in Britain year over year in June, they were up 12 percent. So perhaps, perhaps they may have bottomed out over there.

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