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

A plug-in hybrid BYD ATTO 8 SUV. BYD, China's largest hybrid vehicle exporter to Europe, sold more plug-in hybrids than fully electric models in the first eight months of the year. | REUTERS

Reuters

Oct 12, 2026

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.

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