China’s $7.5 billion EU hybrid boom faces new curbs under deal with EU

SHANGHAI/BEIJING – China’s deal with the European Union to curb exports of hybrid vehicles to the bloc is a fresh hit to Chinese EV makers that have ramped up hybrid shipments exempt from EU tariffs on Chinese-made EVs, as sales growth slows at home.

China’s exports of hybrids to the EU’s 27 member states tripled to $7.5 billion in the first half of this year from $2.5 billion a year earlier, according to Chinese customs data. The figure was nearly nine times the $845 million exported in all of 2021.

Since the EU imposed additional tariffs on Chinese-made EVs in 2024, Chinese automakers have increasingly turned to plug-in hybrids, which are exempt from the extra duties. Weak charging infrastructure in parts of Europe has also supported demand for plug-in hybrids, which are marketed for their long range and strong fuel economy.