EU Prepares Quotas on Chinese Hybrid Vehicles as Carmaker Shares Rally

The European Commission is preparing safeguard measures and tariff-rate quotas to curb imports of Chinese hybrid cars as trade negotiators led by Maroš Šefčovič hold talks in Beijing. Following pure EV tariffs in late 2024, Chinese hybrid imports surged from 3,800 monthly in October 2024 to 50,000 in July 2026, taking roughly 25% of European hybrid sales. Amid a 10.6% drop in German factory orders for August, reports of the potential import caps lifted European automotive shares, including gains of 4.3% for Renault and 3.1% for Volkswagen.