The European Union plans to cap imports of Chinese hybrid cars at 350,000 vehicles a year starting December 1, 2026. The measure is set to run for four years and reduce imports by more than half against a projection of at least 800,000 Chinese hybrids entering the bloc in 2026. The allowance would increase by 6% annually, reaching 371,000 in the second year. The arrangement still needs to be presented to all 27 EU member states before it takes effect.

European Trade and Economic Security Commissioner Maroš Šefčovič confirmed the plan at an October 9 press conference, following a meeting in China with Commerce Minister Wang Wentao. Šefčovič linked the move to the EU’s trade deficit, while China’s Commerce Ministry said the quota would not single out Chinese products or discriminate against Chinese companies. It also said China’s allocation would be no smaller than that for imports from any other origin.

The European Automobile Manufacturers’ Association welcomed the announcement as a possible way to ease trade tensions, while warning that the rapid growth of Chinese hybrid and plug-in hybrid imports had unsettled the market. Chinese brands accounted for 14% of the EU hybrid market and 25% of the plug-in hybrid market in the first half of 2026, up from 2% in each category in 2024. Eurostat figures cited in the report show EU imports of Chinese hybrids rose from 107,000 in 2024 to 302,000 in 2025.