China holds intensive talks on hybrid, EV trade with EU
The safeguard measure would take effect Dec. 1 and could cut Chinese hybrid imports to less than half of current levels, officials said.
- On Monday, the European Union and China held "intensive consultations" on hybrid and electric vehicle trade, announcing a deal that could cut Chinese hybrid imports to the bloc by more than half.
- Following the European Union's October 2024 tariffs on Chinese electric vehicles, a 20% decline in Chinese domestic car sales during early 2026 forced automakers to prioritize European exports as their top market.
- A Jefferies client note indicates the agreement disproportionately impacts BYD, Chery, and SAIC's MG brand, which together accounted for 90% of Chinese-brand hybrid sales in the European Union during the first eight months of 2026.
- Stellantis CEO Antonio Filosa promised attendees they would "witness the reinvention of a European icon" with a retro Citroen 2CV, while Geely Auto plans electric SUV production in Spain to address potential 'Made in Europe' requirements.
- Francois Roudier, secretary general of the International Organisation of Motor Vehicle Manufacturers, warned that "IF THEY DROP EXPORTS THEY DIE," emphasizing Chinese automakers' dependence on European revenue to sustain operations.
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70 Articles
EU tariffs on electric cars from China have been in force for two years, and many Chinese manufacturers have since increased their exports of hybrid vehicles. The European Union is now setting limits on this.
The EU Trade Commissioner has just been in Beijing and has reached an important agreement. Now, what is to follow is concrete.
The European Union will limit imports of hybrid vehicles from China to 350,000 next year, officials in Brussels said, following an agreement between European Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao. The quota will then increase slightly in the coming years.
Since Brussels imposed special tariffs on electric cars from China, the country has sold significantly more plug-in hybrids to Europe. Now an agreement is to cover imports, an EU official speaks of 350,000 cars a year. On one point, however, Brussels does not express itself.
Are European automakers capable of withstanding Chinese competition?
The Paris Motor Show opens its doors today, and with it come mounting economic and diplomatic issues. The European Union has just announced that it has secured a commitment from China to moderate the flow of hybrid vehicles into the block's market. It opens the prospect of cutting China's export by more than a half and could prevent millions of Chinese cars from being shipped to Europe. Are European automakers capable of withstanding this compet…
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