Shares of Hong Kong-listed Chinese electric vehicle (EV) manufacturers plunged on Wednesday, ahead of a crucial vote by the European Union (EU) on imposing tariffs of up to 45% on Chinese EV imports.

Leading the decline was Xpeng, which saw its stock plummet by 12.5% to HK$48.15, marking the biggest intraday percentage drop since August 2023. Other major Chinese EV makers, including NIO, Li Auto, Geely, Great Wall Motor, Leapmotor, and BYD, also experienced significant declines, with their shares falling between 2% and 8.7%.

The potential tariff imposition has raised concerns among investors about the competitiveness of Chinese EVs in the European market. France, Greece, Italy, and Poland are set to vote on Friday in favor of the tariffs, which is expected to be enough for the EU proposal to pass. However, Volkswagen has urged Germany to vote against the tariffs, highlighting the potential impact on the automotive industry.