ECG — 2026-10-29
News from ECG
What we know so far
The European Union is watching the volumes of passenger car imports from China to the EU, and is currently working on the finer details of a policy to limit the volume of hybrid cars imported from China.
Background and BEV Policy:
2024: In 2024 the volumes of battery electric vehicles were the focus, and a policy was implemented to limit the volumes coming in, by introducing tariffs for a 5 year period, commencing 29 October 2024. The tariffs -officially called countervailing duties -were levied following certain criteria on OEMs, for a 5 year period, applied retrospectively from the start date and only on BEVs, in addition to the regular 10% import tax.
Focus Today on Hybrids
Today the focus is on ‘hybrid’ vehicles. The definition for the ‘hybrid’ vehicles in question, however, is currently quite loose.
If we look at the latest data from Eurostat, the official EU data source, and the volumes now quoted both in the European and Chinese press, we see that ‘hybrid’ includes both plug in hybrid electric vehicles (PHEVs) as well vehicles which include both an internal combustion engine and an electric motor for propulsion.
In 2025, the total volume of Hybrids imported into the EU hit 303,000 units, marking an annual increase of 183% y/y. Already in the January to August 2026 timeframe, imports of hybrid passenger cars has surpassed the full year 2025 volume by 64%, and has reached 474,475 units—marking a 175% y/y jump over the Jan to Aug volume 2025. It is this sheer increase, with monthly imports now reaching almost 100K that has caught the attention of the authorities.
The EU Commission is yet to release official details, but what we do know is that the policy introduced to limit BEVs is being used as guidance, and that it is possible that once a date is released the tariffs can be introduced on a retrospective basis.
Policy to Limit Hybrids
4 year policy: this means that the policy will likely run for 4 years including 2027-therefore ending at the end of 2030.
Annual Volume to be set at 350,000 units of Hybrid Passenger Cars
Hybrid definition: includes plug in hybrids + passenger cars with both diesel or petrol engines and electric motors for propulsion
Tariffs will be on top of the 10% regular import tariff
Tariffs are likely to be OEM specific (following guidance that BEV policy based on)
ECG Business Intelligence has contact the EU for comment.
ECG Members may read the full report here.