{"id":195714,"date":"2026-10-12T12:10:44","date_gmt":"2026-10-12T10:10:44","guid":{"rendered":"https:\/\/newmobility.news\/?p=195714"},"modified":"2026-10-12T09:39:41","modified_gmt":"2026-10-12T07:39:41","slug":"europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition","status":"publish","type":"post","link":"https:\/\/newmobility.news\/en\/2026\/10\/12\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\/","title":{"rendered":"Europe puts Chinese hybrids on a leash, but can\u2019t tame competition"},"content":{"rendered":"
\n

Europe has reached a preliminary agreement with China to restrict rapidly growing imports of Chinese hybrid cars, potentially cutting future shipments by more than half. But while Brussels celebrates a trade breakthrough, Beijing insists exports can continue growing.<\/p>\n

Meanwhile, a new Allianz Trade study<\/a> suggests Europe’s automotive crisis is partly self-inflicted. Will protectionism give European manufacturers enough breathing space to catch up?<\/p>\n

Following two days of negotiations in Beijing, EU Trade Commissioner Maro\u0161 \u0160ef\u010dovi\u010d announced an understanding with Chinese Commerce Minister Wang Wentao to limit hybrid exports without imposing additional import tariffs.<\/p>\n

According to the Financial Times, the proposed quota would start at approximately 350,000 vehicles in 2027, increasing by 6% annually. Brussels expects this to reduce imports by more than half compared with projected volumes without restrictions.<\/p>\n

China offers a different interpretation. With around 302,000 Chinese hybrids imported into the EU in 2025, the quota would still allow growth. Beijing also insists the arrangement must not discriminate against Chinese manufacturers. The details remain subject to political approval and implementation negotiations.<\/p>\n

Closing the hybrid loophole<\/h4>\n

The agreement follows an extraordinary expansion of Chinese hybrid exports. When the EU imposed additional duties on Chinese-built battery-electric vehicles in 2024, manufacturers increasingly turned to plug-in hybrids, which were exempt from those tariffs.<\/p>\n

The proposed restrictions reportedly cover both conventional hybrids (HEVs) and plug-in hybrids (PHEVs), although their precise scope remains unclear.<\/p>\n

According to the European manufacturers’ association ACEA, Chinese brands increased their share of Europe’s conventional hybrid market from 2% in 2024 to 14% in the first half of 2026. Their PHEV share surged from 2% to 25%.<\/p>\n

According to Reuters, Chinese hybrid exports to the EU reached $7.5 billion in the first half of 2026, three times their value a year earlier. BYD, Chery and SAIC’s MG have been among the principal beneficiaries.<\/p>\n

Their appeal combines attractive prices, generous equipment and, in the case of PHEVs, the promise of electric driving without range anxiety. But their reputation as a sensible stepping stone towards fully electric mobility is increasingly challenged by real-world emissions studies.<\/p>\n

According to European Environment Agency data analyzed by Transport & Environment, PHEVs emit an average of 145 grams of CO\u2082 per kilometer in actual driving, six times their official test figures and only 14% less than conventional combustion cars.<\/p>\n

ACEA welcomed the trade agreement, warning that Chinese-style price wars could destabilize Europe’s automotive industry. Its Director-General, Sigrid de Vries, acknowledged that Chinese manufacturers are becoming a permanent presence in Europe, while warning that similar import pressures could emerge in the bus and truck sectors.<\/p>\n

A crisis made in Europe?<\/h4>\n

But protecting European manufacturers from disruptive competition is only one side of the equation. A new Allianz Trade study suggests the industry’s difficulties are also the result of two decades of questionable investment priorities.<\/p>\n

According to its economists, European carmakers invested too heavily in combustion-engine technology and short-term profitability while underestimating the importance of batteries, software and digitalization.<\/p>\n

Worryingly, Allianz estimates that automotive investment in Europe will fall by 20% in 2026, while major European companies in other sectors will increase theirs by 10%.<\/p>\n

Meanwhile, German manufacturers have lost between 30% and 45% of their domestic value added per vehicle compared with 2021-2022.<\/p>\n

The study warns that relaxing European CO\u2082 targets could aggravate the problem by reducing pressure to innovate precisely when Chinese competitors are accelerating. Allianz advocates more focused investment, technological partnerships and fewer overlapping development programs.<\/p>\n

What about Belgium and the Netherlands?<\/h4>\n

For the Benelux, the implications differ from those in Europe’s major car-producing countries. Belgium’s company-car market is already predominantly electric, with BEVs accounting for more than half of new registrations in September.<\/p>\n

Nevertheless, Chinese hybrids are targeting private buyers, while Chery’s Omoda and Jaecoo brands are rapidly expanding their dealer network.<\/p>\n

In the Netherlands, the Jaecoo 7 SHS-P has become an important model for the brand’s expansion. Import restrictions could curb their growth or prompt Chinese manufacturers to accelerate production in Europe, with consequences for vehicle distribution, logistics, and potentially Belgium’s automotive supply chain.<\/p>\n

For established manufacturers such as Volkswagen, Renault and Stellantis, the agreement offers temporary relief from aggressive Chinese pricing. Yet there is an irony: all three are increasingly cooperating with Chinese companies themselves.<\/p>\n

Volkswagen develops electric cars and software with XPeng, Renault shares hybrid powertrain development with Geely, while Stellantis is expanding its Leapmotor partnership to manufacture affordable EVs in Europe. Chinese technology is becoming part of Europe’s answer to Chinese competition.<\/p>\n

Will hybrids slow<\/strong> Europe’s EV transition?<\/h4>\n

Not necessarily. Despite their popularity, fully electric cars are gaining market share faster than plug-in hybrids.<\/p>\n

According to ACEA, BEVs accounted for 21.7% of EU registrations during the first eight months of 2026, up from 15.8% a year earlier. PHEVs increased from 8.8% to 10%, while conventional hybrids accounted for 36.6%.<\/p>\n

Restricting Chinese hybrids will not automatically persuade customers to switch to BEVs. It could simply strengthen European and Japanese manufacturers offering similar combustion-based alternatives.<\/p>\n

Meanwhile, Chinese manufacturers may respond by establishing more factories inside Europe, potentially avoiding restrictions on China-built imports while bringing competition even closer to home.<\/p>\n

As European and Chinese manufacturers gather at the Paris Motor Show this week, the contrast is striking: Brussels is trying to contain China’s automotive expansion, while Allianz warns that Europe’s biggest challenge may still lie within its own industry.<\/p>\n

The quotas may buy Europe’s carmakers time. Whether they use it to accelerate electrification or merely prolong the life of combustion technology will determine the agreement’s real value.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Europe has reached a preliminary agreement with China to restrict rapidly growing imports of Chinese hybrid cars, potentially cutting future shipments by more than half. But while Brussels celebrates a trade breakthrough, Beijing insists exports can continue growing. Meanwhile, a new Allianz Trade study suggests Europe’s automotive crisis is partly self-inflicted. Will protectionism give European […]<\/p>\n","protected":false},"author":21,"featured_media":195715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\r\n\r\n{excerpt}\r\n\r\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[77170,77160,28,31030,16,77169,77218],"tags":[],"class_list":["post-195714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-belgium","category-china","category-europe","category-export","category-industry","category-market","category-netherlands"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=1998%2C1534&ssl=1",1998,1534,false],"thumbnail":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=150%2C150&ssl=1",150,150,true],"medium":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=300%2C230&ssl=1",300,230,true],"medium_large":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=640%2C491&ssl=1",640,491,true],"large":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=640%2C491&ssl=1",640,491,true],"1536x1536":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=1536%2C1179&ssl=1",1536,1179,true],"2048x2048":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=1998%2C1534&ssl=1",1998,1534,true],"trp-custom-language-flag":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=16%2C12&ssl=1",16,12,true],"related-thumb":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=640%2C480&ssl=1",640,480,true],"gform-image-choice-sm":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=300%2C300&ssl=1",300,300,true],"gform-image-choice-md":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=400%2C400&ssl=1",400,400,true],"gform-image-choice-lg":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=600%2C600&ssl=1",600,600,true],"mailchimp":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=560%2C430&ssl=1",560,430,true],"unipress-phone":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=640%2C100&ssl=1",640,100,true],"unipress-tablet":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=1536%2C240&ssl=1",1536,240,true],"unipress-tablet-portrait":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=1536%2C180&ssl=1",1536,180,true],"unipress-tablet-landscape":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=1998%2C180&ssl=1",1998,180,true],"unipress-smartphone":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=1080%2C168&ssl=1",1080,168,true],"unipress-wide-screen":["https:\/\/i0.wp.com\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?resize=1998%2C180&ssl=1",1998,180,true]},"post_excerpt_stackable_v2":"

Europe has reached a preliminary agreement with China to restrict rapidly growing imports of Chinese hybrid cars, potentially cutting future shipments by more than half. But while Brussels celebrates a trade breakthrough, Beijing insists exports can continue growing. Meanwhile, a new Allianz Trade study suggests Europe’s automotive crisis is partly self-inflicted. Will protectionism give European manufacturers enough breathing space to catch up? Following two days of negotiations in Beijing, EU Trade Commissioner Maro\u0161 \u0160ef\u010dovi\u010d announced an understanding with Chinese Commerce Minister Wang Wentao to limit hybrid exports without imposing additional import tariffs. According to the Financial Times, the proposed quota…<\/p>\n","category_list_v2":"Belgium<\/a>, China<\/a>, Europe<\/a>, Export<\/a>, Industry<\/a>, Market<\/a>, Netherlands<\/a>","author_info_v2":{"name":"Joris Van Roy","url":"https:\/\/newmobility.news\/en\/author\/jorisximcom-be\/"},"comments_num_v2":"0 comments","yoast_head":"\nEurope puts Chinese hybrids on a leash, but can\u2019t tame competition - newmobility.news<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/newmobility.news\/en\/2026\/10\/12\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Europe puts Chinese hybrids on a leash, but can\u2019t tame competition - newmobility.news\" \/>\n<meta property=\"og:description\" content=\"Europe has reached a preliminary agreement with China to restrict rapidly growing imports of Chinese hybrid cars, potentially cutting future shipments by more than half. But while Brussels celebrates a trade breakthrough, Beijing insists exports can continue growing. Meanwhile, a new Allianz Trade study suggests Europe’s automotive crisis is partly self-inflicted. Will protectionism give European […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/newmobility.news\/en\/2026\/10\/12\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\/\" \/>\n<meta property=\"og:site_name\" content=\"newmobility.news\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/search\/top\/?q=newmobility.news\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-12T10:10:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/newmobility.news\/wp-content\/uploads\/2026\/10\/Scherm\u00adafbeelding-2026-10-12-om-09.34.28-1024x786.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"786\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Joris Van Roy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@jorisvry\" \/>\n<meta name=\"twitter:site\" content=\"@jorisvry\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joris Van Roy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/\"},\"author\":{\"name\":\"Joris Van Roy\",\"@id\":\"https:\\\/\\\/newmobility.news\\\/#\\\/schema\\\/person\\\/993f2da7cd774079044984132dee0ef0\"},\"headline\":\"Europe puts Chinese hybrids on a leash, but can\u2019t tame competition\",\"datePublished\":\"2026-10-12T10:10:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/\"},\"wordCount\":912,\"publisher\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/newmobility.news\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=1998%2C1534&ssl=1\",\"articleSection\":[\"Belgium\",\"China\",\"Europe\",\"Export\",\"Industry\",\"Market\",\"Netherlands\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/\",\"url\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/\",\"name\":\"Europe puts Chinese hybrids on a leash, but can\u2019t tame competition - newmobility.news\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/newmobility.news\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=1998%2C1534&ssl=1\",\"datePublished\":\"2026-10-12T10:10:44+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/newmobility.news\\\/2026\\\/10\\\/12\\\/europe-puts-chinese-hybrids-on-a-leash-but-cant-tame-competition\\\/#primaryimage\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/newmobility.news\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=1998%2C1534&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/newmobility.news\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Scherm%C2%ADafbeelding-2026-10-12-om-09.34.28.png?fit=1998%2C1534&ssl=1\",\"width\":1998,\"height\":1534,\"caption\":\"EU Trade Commissioner Maro\u0161 \u0160ef\u010dovi\u010d (left) and China's Commerce Minister Wang Wentao during trade negotiations in Beijing on 9 October 2026. 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