The European Union is making efforts to curb the sharp increase in imports of Chinese plug-in hybrid vehicles without immediately resorting to new tariffs. According to media reports, Brussels proposed a voluntary cap to China, suggesting Chinese hybrid cars should not exceed roughly 15 percent of the European market. However, Beijing has rejected this plan.
The European Commission has not publicly confirmed that it made such a proposal. China’s Ministry of Commerce, however, responded that any forced or politically negotiated export limits would, in Beijing’s view, violate World Trade Organization rules.
Imports of Chinese hybrids are surging
Brussels’ concern stems from the rapid expansion of Chinese automakers in the plug-in hybrid segment.
While around 3,800 Chinese hybrid vehicles were imported into the EU in October 2024, the number had jumped to approximately 50,000 by July 2026.
This represents more than a thirteenfold increase in less than two years.
Chinese manufacturers such as BYD, Chery, and SAIC are expanding their range of vehicles in Europe that combine internal combustion engines with rechargeable batteries.
Plug-in hybrids have a significant customs advantage over electric cars
The rapid growth is about more than just the price of the cars themselves.
The EU has already imposed additional anti-subsidy tariffs on battery electric vehicles manufactured in China. Depending on the automaker, these can amount to several dozen percent and are added on top of standard import duties.
However, these additional tariffs do not currently apply to plug-in hybrids.
This means Chinese automakers can offer vehicles in this segment under more favorable conditions than for all-electric models.
The expansion of Chinese carmakers in Europe is also noticeable in Hungary, where BYD is preparing a production plant for cars in Szeged.
Brussels reportedly proposed a 15 percent threshold
According to information from the Financial Times and other media outlets, the EU wants to avoid another trade dispute through a voluntary agreement.
Under this scenario, Chinese automakers would limit their market share of hybrid vehicles in Europe to about 15 percent.
This would not be a total ban, but rather a restriction on the volume of vehicles arriving from China.
China, however, has rejected the proposal, arguing that trade should remain open and adhere to WTO rules.
New tariffs remain on the table
A voluntary limit is not the only option Brussels is considering.
The European Commission has also been preparing documentation that could allow for the introduction of further trade measures on Chinese plug-in hybrids.
Any potential tariffs or other protective measures would require a broader political process within the European Union.
Some German officials, whose automotive industry is undergoing restructuring and facing increased competition from cheaper Chinese brands, also support a tougher stance.
Europe fears further loss of production
Brussels also points to the rapidly growing trade deficit with China.
In 2025, the EU’s trade deficit with China reached approximately €360 billion and continued to grow during the first half of 2026.
European Commission President Ursula von der Leyen has linked this situation to the risk of further deindustrialization in Europe.
The automotive sector is especially sensitive for the EU, as it directly and indirectly employs millions of people.
Chinese car brands are accelerating exports
Chinese manufacturers are simultaneously ramping up their vehicle exports abroad.
In August 2026, Chinese exports of passenger cars saw significant year-on-year growth, with exports of electric and plug-in hybrid models growing even faster.
One reason for this is weaker domestic demand in China.
As a result, manufacturers are increasingly searching for customers in Europe and in other international markets.
ALSO READ
The European Union is developing a new strategy: Brussels aims to strengthen security, the economy, and competitiveness.
For European drivers, this dispute could mean that conditions for importing Chinese plug-in hybrids may change in the coming months. If the EU imposes additional tariffs or other restrictions, this could also impact the prices of certain models.
Negotiations between Brussels and Beijing are ongoing. The European Union wants China to take concrete steps already this autumn, while the Chinese side continues to reject solutions it says would artificially restrict trade.
This article was translated from the original Slovak version with the assistance of AI.
