Hong Kong-listed Chinese electric vehicle (EV) makers plunged on Tuesday amid concerns over potential tariffs on Chinese EV imports in the European Union (EU). The sell-off was led by Xpeng, which fell as much as 12.5% to HK$48.15, its biggest intraday drop since August 2023.

The decline comes ahead of a vote on Friday by France, Greece, Italy, and Poland to impose tariffs of up to 45% on Chinese EV imports, which would be enough to get the EU proposal passed. Volkswagen, however, has urged Germany to vote against the tariffs.

Other Chinese EV makers also suffered significant losses, with NIO plunging 8.7%, Li Auto dropping 5.9%, Geely declining 5.2%, Great Wall Motor falling 4%, Leapmotor easing 2.9%, and BYD down 2%. The broader Hang Seng China Enterprises Index and Hang Seng Tech Index fell 3.6% and 5.5%, respectively.