The European Union plans to limit imports of Chinese-made hybrid and plug-in hybrid vehicles to 350,000 units a year, starting as soon as Dec. 1, 2026. The cap is expected to rise by 6% annually for four years.
The limit is part of a broader trade agreement intended to address a significant trade deficit and protect European automakers. An estimated 800,000 Chinese hybrids were expected to be sold in the EU in 2026.
BYD, China’s largest hybrid exporter to Europe, is considered one of the automakers most exposed to the restrictions. Because the quota applies to vehicles imported from China, it may accelerate plans by Chinese manufacturers, including BYD, to expand production in Europe and circumvent the cap.
The agreement follows a tripling in the value of China’s hybrid exports to the EU in the first half of 2026.