European automakers are facing significant pressure from the influx of hybrid vehicles from China.
Recent data reveals that sales of Chinese hybrid cars in the EU have dramatically increased over the past four and a half years. This surge highlights growing concerns in Brussels regarding the future of the European automotive industry, according to reports.
In 2022, only 659 full hybrid vehicles manufactured in China were sold in the EU. However, after the EU imposed anti-subsidy tariffs on fully electric cars from China for 2024, sales of hybrid cars surged, reaching 160,662 units in the first seven months of this year.
Eurostat data indicates that sales of plug-in hybrid vehicles from China also saw a significant rise, climbing from 56,706 units sold in 2022 to 217,764 units between January and July this year.
Brussels’ Demands
The increasing number of Chinese hybrid vehicles on the market is now alarming both the automotive industry and EU officials. As a result, the European Union has requested that China voluntarily reduce its hybrid vehicle exports to the EU.
This measure comes with the potential threat of protective actions, likely in the form of quotas, according to the cited source.
Recent figures from the European Automobile Manufacturers Association (ACEA) reveal that hybrid vehicles now account for nearly 37% of the total market, while electric vehicles make up just over 21%.
ACEA data has shown that three Chinese manufacturers—BYD, Chery, and Leapmotor—have made significant strides, reporting triple-digit growth in the EU. A fourth company, Geely, has consistently increased by 8% in the first eight months of the year, remaining the most popular Chinese brand in the EU with 205,000 cars sold during this period.
BYD is closing the gap on Geely, with its sales skyrocketing by 163% compared to the same period last year, totaling 177,000 units sold. Both companies, along with a fifth Chinese manufacturer, SAIC, now far surpass Elon Musk’s Tesla, which sold 142,000 cars in the EU in the first seven months of the year.
Rapid Electric Vehicle Growth in Europe
Sales of electric vehicles are also rapidly increasing in various parts of Europe. In Germany, sales rose by 75%, reaching 69,000 units in August. France saw an increase of 112%, while Slovenia reported a staggering 266% growth. By contrast, the UK experienced a 27% rise in August, selling a total of 28,000 electric vehicles, and Ireland saw a modest increase of 7%, with 2,200 units sold.
Earlier this month, European Commission President Ursula von der Leyen described the trade deficit between the EU and China as reaching an unsustainable “turning point,” with the deficit now at €1.18 billion per day.
On October 8 and 9, EU Trade Commissioner Maros Sefcovic will meet with his Chinese counterpart, Wang Wentao, to discuss a potential trade truce.
