EU plans annual quota of 350,000 Chinese hybrid car imports

The European Union (EU) plans to introduce an annual quota of 350,000 hybrid vehicles imported from China.

Under the proposed arrangement, the quota will increase by 6% annually after the first year, while the restriction will expire after four years.

According to the report, exports of Chinese-made plug-in hybrid vehicles to Europe have increased since the EU imposed additional tariffs on electric vehicles imported from China in 2024.

The European Commission estimates that imports of Chinese plug-in hybrid vehicles could reach approximately 800,000 units this year. European authorities are concerned that competitively priced Chinese vehicles could put domestic automakers under pressure and capture a larger share of the European market.

Under the proposed mechanism, European customs authorities will stop permitting additional hybrid vehicle imports from China once the annual quota has been reached.

An EU official said the Chinese side had agreed to the mechanism.

The agreement was announced following a meeting between European Commissioner for Trade Maroš Šefčovič and China’s Commerce Minister Wang Wentao.

As part of the broader understanding, China also agreed to reduce tariffs on certain EU products and facilitate the issuance of export licences for rare earth elements and permanent magnets.

The proposed quota forms part of wider EU-China trade negotiations aimed at addressing tensions over vehicle imports, market competition and access to critical industrial materials.