Surge in Chinese Hybrid Sales Triggers Alarm Bells in Brussels

Sales of Chinese hybrid cars have surged dramatically in the EU over the past four and a half years, highlighting increasing concerns in Brussels regarding the future of the European automotive sector.

In 2022, merely 659 fully hybrid vehicles manufactured in China were sold in the EU. However, following Brussels’ imposition of anti-subsidy tariffs on fully electric vehicles from China in 2024, hybrid sales have skyrocketed to 160,662 units in the first seven months of this year.

Eurostat data reveals that sales of Chinese-made plug-in hybrid vehicles—which are favored for longer driving distances and can be recharged via both an internal combustion engine and an external power source—have also soared, climbing from 56,706 units in 2022 to 217,764 units from January to July of this year.

The increasing volume of Chinese hybrids on European roads is now alarming the automotive industry and Brussels officials, who have demanded that China voluntarily reduce its hybrid exports to the EU or face safeguards, likely in the form of quotas.

According to recent data released by the European Automobile Manufacturers’ Association (ACEA), hybrid vehicles now account for nearly 37% of the overall market, while electric vehicles make up slightly over 21%.

ACEA figures indicate that three Chinese manufacturers—BYD, Chery, and Leapmotor—have made significant inroads, achieving triple-digit growth within the EU.

A fourth manufacturer, Geely, has experienced a steady 8% increase over the first eight months of the year, maintaining its position as the most popular Chinese brand in the EU with 205,000 cars sold during that period. Its portfolio includes Sweden’s Volvo and Polestar, the EU’s only all-electric car manufacturer.

BYD is rapidly closing the gap with Geely, posting a year-on-year sales surge of 163% with 177,000 units sold.

Both companies, alongside a fifth Chinese manufacturer, SAIC, have now firmly surpassed Elon Musk’s Tesla, which sold 142,000 cars across the bloc in the first seven months of the year.

European automakers continue to dominate the market, with the Volkswagen group selling 2 million cars in the first eight months of the year.

Electric vehicle sales are also accelerating in parts of Europe, including Germany, where they rose 75% to 69,000 units in August, and France, where sales increased by 112%. Slovenia saw a 266% increase. This compares to the UK, up 27% in August to 28,000 EVs sold, and Ireland, up just 7% to 2,200 units.

Earlier this month, European Commission President Ursula von der Leyen described the current €1.18 billion-a-day trade deficit between the bloc and China as having reached an unsustainable “tipping point.”

The EU’s trade commissioner, Maroš Šefčovič, and his Chinese counterpart, Wang Wentao, are scheduled to meet on October 8 and 9 to attempt to establish a trade truce.

Donald Trump and Xi Jinping are also hoping for a trade truce as they meet for their third summit in 12 months in Washington on Thursday.

Trump agreed in South Korea last October to drop tariffs on certain Chinese imports in exchange for a suspension of China’s export restrictions on rare earths, which are critical to the automotive industry across the US, EU, and UK.

Some analysts believe a deal may not have been finalized yet, and the suspension might not be announced until the Asia-Pacific Economic Cooperation conference next month.

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