China–EU deal targets a fast-growing $7.5bn hybrid trade

Reuters reported that automakers expanded plug-in hybrid shipments after the EU imposed additional tariffs on Chinese-made battery-electric vehicles in 2024. SAIC, BYD and Chery accounted for more than 90% of Chinese hybrid sales volume in the bloc, according to Jefferies.

The policy details still require technical implementation, while manufacturers are considering more European production. That means the deal may change where vehicles are built as much as how many are sold.