"EU to Cap Chinese Hybrid Imports at 350,000 a Year"... Volkswagen CEO Also Calls for Protective Measures

Bloomberg Obtains Document on Safeguard Measures

The European Union (EU) is pursuing a plan to limit imports of Chinese-made hybrid electric vehicles (HEVs) to 350,000 a year. As Chinese automakers rapidly expand their market share in Europe, the chief executive officer (CEO) of Volkswagen, Europe's largest automaker, has also called on European countries to respond collectively.

Bloomberg reported on October 11 that it had obtained a document outlining a safeguard measure to take effect on December 1, 2026. According to the document, the import cap will be set at 350,000 vehicles in the first year and will increase by 6% each year thereafter. The measure is set to remain in effect for four years.

A view of a major Volkswagen factory in Germany. Reuters-Yonhap News.

The measure is reportedly set to apply to both HEVs and plug-in hybrid electric vehicles (PHEVs). According to Bloomberg, the import cap will apply not only to vehicles made in China but also to all HEVs and PHEVs imported into the EU from any country. Bloomberg reported that this is intended to comply with the World Trade Organization's (WTO) principle of non-discrimination. It added, however, that China is expected to receive a quota comparable to or larger than those of other countries.

The agreement comes as Chinese automakers rapidly increase hybrid vehicle sales in Europe. According to the Financial Times (FT), Chinese automakers expanded PHEV exports after the EU imposed additional tariffs on Chinese-made electric vehicles (EVs). The share of Chinese-made vehicles in the EU PHEV market surged from 2% in 2024 to 25% in the first half of 2026.

European automakers have welcomed the import restrictions while calling for additional measures to protect the industry.

According to the Financial Times (FT) on the same day, Volkswagen CEO Oliver Blume welcomed the EU-China agreement on hybrid vehicle trade at an event held ahead of the Paris Motor Show, while emphasizing that "we need to create a level playing field in the European market."

Blume also urged France and Germany to work together to strengthen the competitiveness of Europe's auto industry. "Companies that sell cars here should compete on equal terms and create jobs and added value in Europe as well," he said.

This content was produced with the assistance of AI translation services.