The European automotive industry is facing heightened competition as the market share of hybrid vehicles, particularly those manufactured in China, has seen significant growth. Chinese-made hybrids have made substantial inroads, with sales figures rising dramatically since 2022. This trend has sparked concern among European Union officials who are wary of its implications for local car manufacturers.
Recent data highlights the scale of this shift. Sales of Chinese-made fully hybrid vehicles skyrocketed from a mere 659 units in 2022 to 160,662 in the first seven months of 2026. Meanwhile, sales of Chinese plug-in hybrids surged from 56,706 units in 2022 to 217,764 during the same period this year. This increase follows the EU’s 2024 decision to impose anti-subsidy tariffs on Chinese electric vehicles, a move that did not extend to hybrid models.
In response to this competitive pressure, the European Commission has requested that China voluntarily limit its export of hybrid vehicles to the region. Should negotiations fail to produce an agreement, the EU may consider implementing safeguard measures, such as potential quotas, to protect its automotive industry.
Chinese automakers like BYD, Chery, and Leapmotor have experienced considerable growth in the European market. Geely, the largest Chinese automotive group operating in Europe, reported sales of approximately 205,000 vehicles in the first eight months of 2026, while BYD sold around 177,000 vehicles, marking a significant year-on-year increase.
Currently, hybrid vehicles account for nearly 37% of the European car market, compared to fully electric vehicles, which make up just over 21%. This rise in hybrid vehicle imports comes amidst the EU’s efforts to address its growing trade imbalance with China and safeguard the competitiveness of its domestic car manufacturers.