Chinese automakers reportedly head to Beijing for talks on EU hybrid export quotas

Phate Zhang

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Nov 2, 2026, 2:54 PM GMT+8

Several automakers are vying for export allocations under a limited overall quota.

The proposed plan would set China's hybrid export quota to the EU at 350,000 vehicles in the first year, with annual increases of 6% thereafter.

Several Chinese automakers have reportedly traveled to Beijing recently for talks with regulators on quotas for hybrid vehicle exports to the European Union, seeking export allocations under a China-EU trade understanding.

Cailian reported the development on Monday, citing multiple people familiar with the matter. The talks come less than 1 month after China and the EU announced an understanding on hybrid vehicle trade.

"The total quota is limited, so each company will not receive a large export allocation. All the automakers are currently working to secure their share," the report quoted 1 person familiar with the matter as saying.

The report did not identify the automakers involved, the export volumes each was seeking, or the specific criteria or outcomes of quota allocation.

The trade arrangements under discussion could affect Chinese automakers' product strategies in Europe. Hybrids were previously excluded from the EU's countervailing duties on China-made battery electric vehicles.

Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic held talks in Beijing on October 8-9, after which the sides announced an understanding on hybrid vehicle trade.

China's Ministry of Commerce said on October 12 that the sides had agreed to an arrangement allowing growth from the 302,000 hybrid vehicles the EU imported from China in 2025, ensuring room for Chinese companies' exports and steady growth.

The ministry did not disclose specific quotas or an implementation date at the time, but said China's allocation would be no lower than that of any other source of EU imports and that the arrangements should comply with World Trade Organization (WTO) rules.

Bloomberg reported on October 11, citing a proposal document it had seen, that China's hybrid export quota to the EU would be set at 350,000 vehicles in the first year, increasing by 6% annually from the second year. The measures would remain in place for 4 years.

The measures could take effect as early as December 1 and cover both hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), according to the report. That timing was part of the proposed arrangements reported at the time.

The quota mechanism outlined in the document would cover multiple sources of EU imports to comply with the WTO's principle of non-discrimination, while exempting certain countries and territories.

However, Bloomberg noted at the time that the document did not clarify whether vehicles exceeding the quotas could enter the EU subject to additional tariffs, or whether the quotas would serve as hard import caps.

Sefcovic said on October 9 that the understanding included halving Chinese HEV and PHEV exports to the EU, but did not specify the baseline for that reduction.

The EU imposed definitive countervailing duties on China-made battery electric vehicles (BEVs) in October 2024, with hybrid vehicle trade subsequently emerging as a new focus of automotive talks between the sides.

The commerce ministry said the arrangement allows growth from the 302,000 hybrid vehicles the EU imported from China in 2025.