Sales of Chinese hybrid vehicles in the European Union have surged dramatically over the past four and a half years, raising concerns within Brussels and the European automotive industry about the sector’s future competitiveness. Data indicate a sharp increase in imports of Chinese-made hybrids, particularly since the EU imposed anti-subsidy tariffs on fully electric vehicles from China in 2024.
In 2022, only 659 Chinese fully hybrid cars—vehicles where the petrol or diesel engine charges the motor and battery—were sold in the EU. However, that figure soared to 160,662 units in the first seven months of 2026. Similarly, sales of Chinese plug-in hybrids, which can recharge both via the fuel engine and an external power source, jumped from 56,706 in 2022 to 217,764 in the same period this year, according to Eurostat data.
The rapid growth of Chinese hybrid vehicles has prompted the European Commission to urge China to voluntarily curb exports of these models to the EU. Officials have warned of potential safeguards, including quotas and tariffs, to protect the domestic industry. On Thursday, the German automotive sector gave its strongest indication yet of support for tariffs targeting Chinese hybrids. The German Association of the Automotive Industry (VDA) called for a thorough assessment of trade defense measures available to the EU, emphasizing that such instruments must be WTO-compliant and ready to address unfair market practices.
According to figures from the European Automobile Manufacturers’ Association (ACEA), hybrid vehicles now represent nearly 37% of the EU market, outpacing fully electric cars, which account for just over 21%. Chinese manufacturers BYD, Chery, and Leapmotor have reported triple-digit growth rates in the bloc, while Geely has maintained steady growth of about 8% in the first eight months of the year. Geely, which owns European brands including Sweden’s Volvo and the all-electric Polestar, remains the leading Chinese car brand in Europe, with 205,000 vehicles sold in that period. BYD has rapidly closed the gap, increasing sales by 163% year-on-year to 177,000 units. Along with SAIC, these companies have overtaken Tesla, which sold 142,000 vehicles across the EU in the first seven months of 2026.
Despite the rise of Chinese car brands, European manufacturers continue to dominate the market. The Volkswagen Group sold 2 million cars in the first eight months of the year, maintaining its position as the bloc’s top seller. Electric vehicle sales are also expanding quickly in parts of Europe, with Germany seeing a 75% increase to 69,000 units in August and France experiencing a 112% rise. Slovenia reported the most significant jump at 266%. In contrast, the United Kingdom’s EV sales grew by 27% to 28,000 units in August, while Ireland’s increase was more modest at 7%, with 2,200 vehicles sold.
The surging trade imbalance between the EU and China has heightened political tensions. European Commission President Ursula von der Leyen recently described the current €1.18 billion daily trade deficit as reaching an unsustainable “tipping point.” EU Trade Commissioner Maroš Šefčovič is scheduled to meet with his Chinese counterpart Wang Wentao in early October to seek a resolution. Meanwhile, in Washington, U.S. President Donald Trump and Chinese President Xi Jinping are set to hold their third summit in a year, where suspensions of tariffs and export restrictions on critical rare earth elements—vital to the automotive industries in the US, EU, and UK—are expected to be key topics. Observers note that a final agreement may yet be delayed until the upcoming Asia-Pacific Economic Cooperation conference.