China’s $7.5 billion EU hybrid boom faces new curbs under deal with EU
Since the EU imposed additional tariffs on Chinese-made EVs in 2024, Chinese automakers have increasingly turned to plug-in hybrids.
In a recent development, China has entered into a deal with the European Union to limit the export of hybrid vehicles to the EU bloc. This move comes as a setback for Chinese electric vehicle (EV) manufacturers, who have been increasingly exporting hybrids to evade EU tariffs on homegrown EVs. The trend was evident in the first half of 2024, with Chinese hybrid exports to the EU surging to $7.5 billion, up from $2.5 billion a year prior.
This represents a tripling of exports, marking a significant increase from 2021's $845 million in hybrid shipments to the EU. The surge aligns with the EU's decision to impose extra taxes on Chinese-made EVs in 2024. The shift to plug-in hybrids, which are not subject to the additional duties, has gained traction. Europe's sparse charging infrastructure has further fueled demand for these hybrids, which are favored for their extended range and superior fuel efficiency.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
