Chinese hybrid car sales have surged dramatically in the European Union since anti-subsidy tariffs on electric vehicles were imposed in 2024, sparking alarm among policymakers and the European automotive industry. Fully hybrid car sales rocketed from just 659 in 2022 to 160,662 in the first seven months of 2026, whilst plug-in hybrids rose from 56,706 to 217,764 over the same period. Brussels has expressed concern that Chinese manufacturers are exploiting a gap in trade regulations and has asked China to voluntarily curb hybrid exports or risk facing safeguards including quotas.

Chinese car makers are rapidly gaining ground in the EU market, with BYD achieving 177,000 units sold (a 163% year-on-year increase), Geely maintaining 205,000 sales, and other firms including Chery and Leapmotor showing triple-digit growth. Hybrid vehicles now represent nearly 37% of the overall EU car market compared to just over 21% for electric cars, whilst European manufacturers still lead overall with Volkswagen Group selling 2 million vehicles. The surge reflects both the impact of tariffs and varying adoption rates across member states, with Germany's electric car sales up 75% and France up 112%, whilst the UK saw more modest growth of 27%. Trade talks are scheduled between EU and Chinese officials on 8–9 October, amid a reported €1.18 billion-per-day trade deficit between the blocs.