Sales of hybrid vehicles manufactured in China have soared within the European Union, presenting significant competition to local carmakers. According to recent data, the EU saw a dramatic increase from 659 fully hybrid vehicles sold in 2022 to 160,662 in the first seven months of 2026. Similarly, Chinese-made plug-in hybrids saw a significant rise, with sales jumping from 56,706 units in 2022 to 217,764 in the same period this year.
This surge follows the EU’s 2024 decision to impose anti-subsidy tariffs on Chinese electric vehicles, a move that did not extend to hybrid models, thus allowing their market presence to expand considerably. In response to this trend, the European Commission has requested that China voluntarily restrain its exports of hybrid vehicles to the EU. Failing an agreement, the EU may consider implementing safeguard measures, including potential quotas.
Chinese automotive companies are rapidly expanding their foothold in the European market. Notably, BYD, Chery, and Leapmotor have reported robust growth, with Geely maintaining its position as the leading Chinese automotive group in the region. BYD’s sales in the EU have reached approximately 177,000 vehicles, exhibiting strong year-on-year growth, while Geely sold around 205,000 vehicles during the first eight months of 2026.
Despite the influx of Chinese hybrids, European manufacturers still hold the largest overall market share. Currently, hybrid vehicles account for nearly 37% of the European car market, whereas fully electric vehicles make up just over 21%. This change in market dynamics comes as the EU grapples with a growing trade imbalance with China and seeks to protect its domestic automotive sector’s competitiveness.