Brussels Sets 350,000-Unit Annual Import Quota for Chinese Hybrids Under Four-Year Agreement

An Annual Quota for Hybrids From China

Imports of hybrid cars made in China will be capped at 350,000 units a year in the European Union, with the limit rising 6% each year. A European Commission official said so on Monday, October 12, 2026, BFM Business reports. The mechanism is part of a four-year agreement announced on Friday.

According to BFM Business, the restriction comes as Chinese automakers are accelerating sales of these models in Europe. The quota would rise by 6% a year over three years.

Why Hybrids Are Affected

According to BFM Business, Chinese brands such as BYD, MG, Jaecoo and Omoda have for several months relied on hybrid powertrains to win market share in Europe. This approach allows them in particular to avoid the additional duties Brussels applies to battery-electric cars produced in China.

The outlet notes that these electric models have been subject since 2024 to surcharges of up to 35.3%, on top of the usual 10% import duties. Hybrids are exempt from these surcharges.

Rapid Growth in Sales

According to the consultancy Dataforce, cited by BFM Business, Chinese brands accounted for more than 11% of new car sales in Europe in August 2026. Their share is higher in hybrids: 25.45% of registrations that month, or roughly one car in four.

For plug-in hybrids, Chinese automakers' share reaches one vehicle in three. A year earlier, they represented only 3% of this segment, according to the same data reported by BFM Business.

Volumes Expected to Fall Sharply

The Financial Times, cited by BFM Business, expects 800,000 Chinese hybrids to be imported into the European Union in 2026, compared with 300,000 in 2025, an increase of 167% in one year. Nearly 380,000 vehicles of this type had already been shipped to the EU during the first seven months of 2026, a figure above the annual cap being considered for 2027.

BFM Business concludes that the 350,000-vehicle cap planned for 2027 would cut the volumes expected this year by more than half, a reduction of 56%.

Analysis

The information reported by BFM Business shows a measure targeting a segment not covered by existing surcharges. The sources do not specify how the quota will be divided among brands, nor the reaction of automakers or Beijing: these points remain to be watched. BFM Business also uses the term "envisaged" for the 2027 cap, which suggests some details could still change.