12:27 - 12.10.2026

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October 12, Fineko/abc.az. China's agreement with the European Union to limit hybrid vehicle exports to the bloc marks a fresh blow to Chinese EV manufacturers.

As domestic sales growth cools in China, automakers had rapidly scaled up shipments of hybrid models to Europe, generating $7.5 billion while bypassing the tariffs imposed by the EU on Chinese-made pure electric vehicles.

The new deal closes a key loophole that enabled Chinese automakers to sustain growth in the European market without incurring heavy duties. The move poses additional hurdles for Chinese EV brands relying on overseas expansion to counter sluggish home demand.