European Union to restrict Chinese hybrid cars imports to 3,50,000 per year, says report

The European Union (EU) has agreed to limit hybrid car imports from China as part of its four-year deal and shared the expected timeline from which the EU will implement the measures, multiple agencies reported, citing a European Commission official.

The official said the EU would limit hybrid four-wheeler imports from China to 350,000 cars per year and would allow an annual increase of 6 per cent.

Chinese automakers increasingly shifted to plug-in hybrids after the EU imposed additional tariffs on Chinese-made EVs in 2024, which are exempt from extra duties. Weak charging infrastructure in parts of Europe has also raised the demand for plug-in hybrids.


Read more: China holds intensive talks on hybrid, EV trade with EU

The EU's latest move comes amid rising concerns over China dominating the European market with cheap and subsidised, low-cost cars. European hybrid automobile manufacturers have seen declining sales and have been the worst-performing globally.

Chinese exports of hybrid cars to the EU grew by three times to $7.5 billion in the first half of this year from $2.5 billion a year earlier, Reuters reported, citing Chinese customs data. The figure was nearly nine times the $845 million exported in all of 2021.

Prominent EU carmakers such as Mercedes-Benz Group AG saw a decline in car sales of 8%, while Volkswagen AG had reduced its profit forecast following a similar trend with BMW AG in June, said a Bloomberg report.

Read more: China says can avoid 'escalation' after EU trade talks

The deal is set to accelerate Chinese automakers' move to increase production in Europe, reported Reuters citing analysts.

The EU commission official said the initial phase of the import restrictions on the vehicles is expected to begin in early December this year.

Recently, French President Emmanuel Macron welcomed the announcement of the new trade measures.

(With inputs from Agencies)