Business · Trade · 7 hrs ago

EU to limit imports of Chinese hybrid cars from 2027

EU to limit imports of Chinese hybrid cars from 2027

The EU and China have agreed to limit imports of hybrid and plug-in hybrid cars into the EU.

The restrictions follow a rapid rise in imports from China, which the European Commission estimates could reach 800,000 vehicles by the end of 2026.

Under the agreement, imports will be capped at 350,000 vehicles in 2027 and can then grow by no more than 6% a year until 2030.

The limits will also apply to other trading partners, including Japan and South Korea, and to cars made elsewhere by Chinese companies.

The EU says the measure is designed to protect a threatened industry while complying with World Trade Organization rules.

It has already imposed duties of up to 45% on Chinese electric cars, which it says offset state subsidies.

The new limits may raise prices for consumers, while Chinese carmakers may respond by building more factories in Europe.

Sources

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