- The import of Chinese hybrid vehicles into the EU rose from 3,800 to 50,000 vehicles in less than 2 years.
- The EU is asking China for voluntary limits on exports; otherwise, higher customs duties are threatened.
- Electric vehicles have a customs duty of up to 45%, while hybrids are currently only 10%.
- According to von der Leyen’s figures, the EU’s trade deficit with China is €1 billion per day.
The European Union is dealing with a new problem after tariffs on Chinese electric vehicles: a sharp increase in imports of Chinese hybrid cars, which are almost slipping past the duties. According to the Financial Times, the EU is now asking China to voluntarily limit the export of hybrids to the EU, otherwise it will consider higher duties as well—even for ne.
Hybrid imports have increased 13-fold in less than two years
According to data cited by the Financial Times, imports of hybrid cars from China into the EU rose from 3,800 units in October 2024 to 50,000 units in July 2026, which is more than a thirteen-fold increase. At the same time, their average price has fallen. Pressure on the EU to act has intensified after Chinese hybrid imports reached the highest level on record in the second quarter.
Electric vehicles have customs duty 45%, hybrids so far only 10%
The EU introduced countervailing duties on Chinese pure electric cars (BEV) as early as October 2024. Today, they can reach up to approximately 45%. Hybrid cars, however, are subject only to the standard duty of 10%. Since then, imports of Chinese electric vehicles have grown only slightly, while hybrid imports have surged and become the new focus of a trade dispute between the EU and China. According to reports, manufacturers have apparently found a way to partially avoid the EV tariffs.
Trade deficit has “reached a turning point”, says von der Leyen
European Commission President Ursula von der Leyen said that the EU’s trade deficit with China, around 1 billion euros a day, has reached a turning point and that the EU will use the tools at its disposal to rebalance the relationship. The EU hopes that voluntary export limits will force Chinese carmakers to invest more directly in Europe or to cooperate with local manufacturers. Japanese carmakers once took a similar approach. According to the Financial Times, Germany and France are moving toward a consensus on a tougher stance toward China. EU Trade Commissioner Maroš Šefčovič is set to speak with China’s commerce minister and is due to visit Beijing in the second week of October.
Why car exports are so important for China
In August, China exported 1.01 million cars to the rest of the world, up 65.3% year over year. Of that total, nearly half, 526 thousand units (up +130% year over year), were electrified vehicles (NEV), meaning electric cars and hybrids combined. Exports are becoming increasingly important for the Chinese market too, because domestic NEV sales in the same period fell by 4.6% year over year.
While exact trade restrictions are still being discussed, in Slovakia Chinese cars—including hybrids—can be bought without any limits, and since higher EU-wide duties do not yet apply to hybrids, they remain relatively affordable compared with Chinese electric vehicles, which became more expensive after the introduction of the duty. Any tightening of the rules could therefore also be reflected in the prices of hybrids that customers buy here—not only in corporate fleets.
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