China's $7.5 billion EU hybrid boom faces new curbs under China-EU deal

China’s $7.5 billion hybrid export surge to the EU is set to face new restrictions after an EU-China deal aimed at curbing hybrid vehicle imports. Hybrids shipped to the EU’s 27 member states tripled to $7.5 billion in the first half of 2026, up from $2.5 billion a year earlier, according to Chinese customs data—nearly nine times the $845 million exported in all of 2021. The shift follows EU additional tariffs on Chinese-made EVs in 2024, pushing automakers toward plug-in hybrids that were exempt. Analysts say weak charging infrastructure has also boosted demand. While Brussels and Beijing haven’t detailed implementation, the deal could be a “risk-relief” for tariffs, but “quota risk” remains.