Sales of Chinese-manufactured hybrid vehicles in the European Union have experienced dramatic growth, raising concerns among EU policymakers and the automotive industry about market competitiveness and the future of European car manufacturers.
Data compiled by Eurostat reveals a stark shift in the hybrid market. In 2022, only 659 Chinese-made fully hybrid cars were sold across the EU. This number climbed to 160,662 units during the first seven months of the current year. Plug-in hybrid vehicles, which combine fuel engines with rechargeable batteries and appeal to consumers requiring longer driving ranges, also surged from 56,706 sales in 2022 to 217,764 during the same seven-month period this year. The growth trajectory accelerated notably after Brussels imposed anti-subsidy tariffs on fully electric Chinese vehicles in 2024, prompting Chinese manufacturers to pivot toward hybrid models.
The expansion of Chinese hybrid market share has triggered official responses from both EU institutions and industry representatives. The European Commission has approached Chinese authorities requesting voluntary reductions in hybrid exports or indicated it may implement safeguards such as quotas. The German Association of the Automotive Industry, representing the bloc’s largest automaking sector, signaled openness to trade defense mechanisms including tariffs on Chinese hybrids. Industry data shows three Chinese manufacturers—BYD, Chery, and Leapmotor—achieving triple-digit growth rates, while Geely maintained an 8% increase and sold 205,000 vehicles in the first eight months of the year.
Market positioning has shifted considerably, with BYD and several other Chinese firms now outpacing Tesla in EU sales volumes. Meanwhile, hybrid vehicles have captured approximately 37% of the overall EU automotive market, compared to just over 21% for electric cars. European manufacturers retain dominant market positions, with the Volkswagen Group alone selling approximately 2 million vehicles during the same period.
The vehicle trade dynamics reflect broader commercial tensions between the EU and China. European Commission President Ursula von der Leyen characterized the trade deficit with China as reaching an unsustainable level. EU Trade Commissioner Maroš Šefčovič and Chinese counterpart Wang Wentao are scheduled to meet on October 8 and 9 to pursue negotiations.
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