The European Union (EU) has announced a significant limitation on the import of hybrid electric vehicles from China, capping the number at 350,000 cars per year. This decision, confirmed by the European Commission, comes in response to a surge in imports that has seen approximately 800,000 battery and plug-in hybrids expected to be sold this year.
Quota Implementation
The new quota is set to take effect in December and is anticipated to reduce China's market share in the EU from 6% to 3%. This measure will be enforced under World Trade Organization (WTO) safeguard rules, allowing for swift implementation without the lengthy investigations typical of anti-dumping measures.
- Key Points:
- Imports exceeding the quota will not incur tariffs but will be held at customs in Europe.
- Chinese vehicles manufactured within the EU, such as those produced in Hungary or potentially Spain, will be exempt from this quota.
- EU companies manufacturing cars in China will still be subject to the quota.
