A China-EU agreement could more than halve Chinese hybrid-car exports to the bloc, initially capping shipments at 350,000 a year for four years, with the ceiling rising 6% annually from the second year. The accord may favor larger manufacturers already building or planning production in Europe, while smaller peers face a tougher path.
The agreement could cut Chinese hybrid-car exports to the EU by more than half. The four-year scheme would initially cap shipments at 350,000 a year, with the ceiling rising 6% annually from the second year, Bloomberg reportedly reported, citing a planning document.
Hybrids made up 44% of China’s auto exports to the region in the first seven months of the year. Plug-in hybrids accounted for 25% of shipments. Smaller brands such as Li Auto and Xiaomi, which are beginning to plan European entry, face a tougher road, while BYD, Geely and SAIC have established or planned European production.
Chery is assembling vehicles in Barcelona, BYD has a new plant in Hungary and is considering three more regional facilities, Geely has a deal to use Ford Motor’s Valencia plant, and SAIC is setting up in Spain. The article argues that the agreement signals Beijing’s confidence that leading Chinese automakers can expand European production.
