Reuters: Chinese automakers to accelerate local production in Europe
According to a report by Reuters (Japanese edition) on October 12, the agreement under which the European Union has set quantity limits on imports of Chinese-made hybrid vehicles (HV) is expected to impact Chinese automakers, while simultaneously accelerating their efforts to establish production facilities locally in Europe.
Due to the EU’s zero-tariff policy on hybrid vehicles, Chinese exports of such vehicles to the bloc reached $7.5 billion in the first half of 2026—triple the $2.5 billion recorded during the same period in 2025.
SAIC Motor, BYD, and Chery accounted for more than 90% of all Chinese-made hybrid vehicle sales in the EU market. In the European sales figures of these three companies, over half of the vehicles sold were hybrid models.
According to Schmidt Automotive Research, Chinese brand vehicles achieved a record 15% share of the European automotive market in the second quarter of 2026, up from 9.5% in the first quarter of 2024.
In the plug-in hybrid segment, Chinese-origin vehicles now hold over 25% market share—a significant increase from just 1.7% at the beginning of 2024.
On October 12, Renault CEO François Provost stated that importing Chinese-made hybrid vehicles was not sustainable for Europe. At the same time, he noted that the agreement setting import caps was preferable to trade war, emphasizing the need to “manage trade relations prudently.”
Investors broadly view the agreement as having eased trade tensions and signaling a temporary delay in potential tariffs on Chinese-produced hybrid vehicles.
While further discussions remain necessary regarding implementation rules, quota levels, and minimum pricing thresholds, the immediate risk has been mitigated.
Industry consultants familiar with China’s automotive sector
Dan Michael said: “We will be watching to see whether China adheres to the agreement—or seeks loopholes, or simply aims for temporary tariff exemptions.”
Analysts believe that although a surge in imports may occur before the quota system takes effect, the agreement is ultimately likely to accelerate local production by Chinese automakers in Europe.
Bill Russo, founder of Shanghai Automotive Consulting, stated: “Setting import volume limits will strengthen the incentive for Chinese automakers to ramp up production in Europe.”
Original source: toutiao.com/article/1878850174833676/
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