China and the European Union have reached a consensus on hybrid vehicle trade following negotiations. The agreement, announced on October 9, aims to comply with World Trade Organisation rules and prevent the introduction of new tariffs on Chinese imports.
Maroš Šefčovič, the European Commission’s Commissioner for Trade and Economic Security, stated that the deal seeks to regulate the growth of Chinese hybrid exports. Projections suggest that export volumes over the next four years will be over 50% lower than initial forecasts, which equates to a reduction of millions of units.
Data from the China Passenger Car Association shows that China exported 1.56 million vehicles to the EU in the first eight months of 2026. This figure includes 630,000 electric vehicles, 490,000 plug-in hybrids, and 270,000 hybrid electric vehicles, showing significant year-on-year growth.
According to the European Automobile Manufacturers’ Association, Chinese brands secured a 14% share of the European hybrid market in the first half of 2026. In the plug-in hybrid segment, their market share reached 25%, compared to 2% in 2024.
The agreement is currently awaiting final approval from the President of the European Commission and member state leaders. Industry groups, including the German Association of the Automotive Industry and the China Chamber of Commerce to the EU, have welcomed the move as a step toward market stability.
