A new agreement between Beijing and the European Union to restrict hybrid vehicle exports is set to impact Chinese automakers who leveraged plug-in hybrids (PHEVs) to bypass earlier EU tariffs on pure electric vehicles (EVs).
📌 Key Figures & Market Dynamics:
• $7.5 Billion H1 Export Surge: China’s hybrid exports to the 27 EU member states tripled in H1 (up from $2.5B in H1 2025 and $845M in all of 2021).
• >90% Concentration: SAIC, BYD, and Chery account for over 90% of Chinese hybrid sales in the EU, with hybrids representing more than half of their total European volume.
• 25%+ Market Share: Chinese plug-in hybrids captured over a quarter of Europe’s PHEV market in Q2 (up sharply from just 1.7% in early 2024). Overall EV market share hit 15%.
• “Millions of Cars” Cut: EU Trade Commissioner Maroš Šefčovič stated the quota arrangement would reduce imports by “several million cars over four years.”
💡 Strategic Pivot: Instead of stalling expansion, leaders like Changan President Zhao Fei view the export caps as a transition toward “Made in Europe” local manufacturing, with several firms preparing to start local European production as early as next year.