The European Commission is reportedly preparing import restrictions for Chinese hybrid vehicles following China's refusal to implement voluntary export limits. Brussels is considering a safeguard procedure that could introduce import quotas, similar to measures recently adopted by Canada for electric vehicles.
Under the proposed system, a specific volume of hybrid cars could enter the EU at the standard 10 per cent tariff. Imports exceeding this quota would face additional, yet-to-be-determined levies. This approach differs from the existing anti-subsidy tariffs on battery electric vehicles, which vary by manufacturer.
The push for restrictions follows a sharp rise in imports, which grew from 3 800 units in October 2024 to approximately 50 000 units by July 2026. Brands like BYD and MG Motor have increasingly pivoted to hybrids in Europe to avoid the special tariffs imposed on pure electric models two years ago.
EU Trade Commissioner Maroš Šefčovič is currently in Beijing for negotiations with Chinese Commerce Minister Wang Wentao. Officials are exploring potential agreements that might include local production requirements for Chinese manufacturers, mirroring historical trade deals that encouraged foreign automakers to build factories within Europe.
