European Automakers Rally as Brussels Prepares Emergency Import Caps on Chinese Hybrids

European automotive shares rallied on reports that the European Union is preparing emergency regulatory measures to cap imports of Chinese-made hybrid vehicles. Early trading saw Renault climb 4.3%, Volkswagen rise 3.1%, and Stellantis gain 3.0%. The gains come as EU Trade Commissioner Maroš Šefčovič conducts two-day talks in Beijing addressing China's £1 billion-a-day trade surplus after hybrid sales surged following late-2024 tariffs on pure electric vehicles. Brussels is prepared to enact formal safeguards and import quotas if talks fail, backed by a joint Franco-German proposal for a fast-acting trade defense mechanism.