EU announces cap on Chinese hybrid car imports

The European Union will cap imports of hybrid vehicles from China to 350,000 a year, a senior EU official said on Monday after Brussels and Beijing agreed to moderate their entry to the bloc. "This will cut by more than half the current exports to the EU, which we estimate are likely to reach up to 800,000 units in 2026," the official said. The cap will apply from 2027 for a period of four years, rising by six percent annually from the second year onwards. The EU will use its safeguard measure, which allows the bloc to limit imports to stop the flood of a certain product to Europe. The subject of hybrid vehicles is sensitive because these models have become one of the main routes through which Chinese manufacturers enter the EU market. The EU in 2024 set hefty additional tariffs on Chinese electric cars, alleging they benefit from unfair state subsidies. Beijing and Brussels agreed to "moderate" China's exports of hybrids and plug-in hybrids to the EU last week, but details of the plan were not immediately made public. The Commerce Ministry in Beijing said on Monday that Europe imported 302,000 hybrid vehicles in 2025 and that last week's deal would be based on such...