China & EU Make Deal to Cut Flood of Hybrids into EU

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Over the course of a few years, China became the absolute juggernaut of the world’s electric vehicle industry. That includes full electrics (BEVs) and plugin hybrids (PHEVs). Regarding the latter, Chinese companies added a lot more battery capacity and range to PHEVs while improving efficiency, technology, charging, etc. So, when the EU put large tariffs on Chinese BEVs but not Chinese PHEVs, it was inevitable that Chinese automakers would shift and prioritize the sale of PHEVs on the European continent.

Now, however, to address the rapid growth of PHEVs made in China being sold in Europe, the EU and China have reportedly made a deal that presumably works for both economic entities. Though, we don’t know the details of the deal yet. However, in general, the result is supposed to be half as many China-made conventional hybrids and plugin hybrids being delivered in the European Union.

“China and the European Union reached an understanding on hybrid vehicle trade, marking progress in negotiations as the bloc seeks to curb imports, though details of how it will be implemented remain unclear,” CnEVPost shares. “The understanding followed intensive consultations and complies with World Trade Organization (WTO) rules, China’s Ministry of Commerce said in a statement released on Friday, without disclosing specific terms.”

We don’t know anything about the timeline, or how the agreement is to be implemented. There’s been a push and pull between China and the EU on this matter for months, according to various journalistic organizations, with discussion of voluntary reductions, WTO rules, potential tariffs, limits on imports, and more. What the compromised ended up being, we don’t know.

We’ll have to wait to see what information comes out in coming days, weeks, and months.