Business · Trade · 1 hr ago

EU says China will moderate hybrid car exports to Europe

EU says China will moderate hybrid car exports to Europe

China has become the world's largest car producer, making 34 million vehicles in 2025.

As its home market becomes saturated, it is seeking more sales in Europe, where Chinese brands' market share rose from 0.5% in 2021 to more than 6% in 2025.

The EU says it has reached an agreement in principle for China to moderate exports of hybrid vehicles to the bloc, after threatening higher tariffs.

The meaning of “moderate” remains unclear.

Chinese carmakers are also planning to build vehicles in Europe, and a factory has recently been built in Hungary.

European companies face pressure to compete: Volkswagen has announced plans to cut 50,000 jobs in Germany by 2030, while French automakers are focusing on electric cars made in France.

The EU-China agreement is an initial step, but the sources do not specify how export limits will work.

Sources

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