Sales of Chinese hybrid cars have grown rapidly in the European Union over the past few years, raising concerns about the future of the European automotive industry. In 2022, just 659 fully hybrid cars made in China were sold in the EU. However, after the European Union imposed anti-subsidy tariffs on fully electric cars from China in 2024, sales of hybrid models surged to 160,662 in the first seven months of this year. According to Eurostat, plug-in hybrid vehicles from China also saw a significant rise, with sales increasing from 56,706 in 2022 to 217,764 in the first seven months of 2024. This growth has prompted concerns in Brussels, where officials are considering measures such as export quotas or voluntary reductions in Chinese hybrid car sales to protect the European market. The European Automobile Manufacturers’ Association (ACEA) reports that hybrid cars now make up nearly 37% of the EU car market, while fully electric vehicles account for just over 21%. Chinese manufacturers are playing a key role in this shift. Three major Chinese brands—BYD, Chery, and Leapmotor—have experienced triple-digit growth in the EU. Another, Geely, has seen a steady 8% increase in sales so far this year. Geely is the most popular Chinese brand in the EU, having sold 205,000 cars in the first eight months of 2024. Its brands include Volvo and Polestar, the latter being the EU’s only all-electric car manufacturer. BYD is also gaining ground, with sales rising 163% year-on-year to 177,000 units sold. These Chinese companies have now overtaken Elon Musk’s Tesla in the EU market, with Tesla selling 142,000 cars in the first seven months of 2024. European automakers still lead in overall sales, with the Volkswagen group selling 2 million cars in the first eight months of the year. Meanwhile, sales of electric vehicles are rising sharply in several European countries. Germany saw a 75% increase in EV sales in August, reaching 69,000 units, while France recorded an 112% rise. Slovenia experienced the highest growth, with a 266% increase in electric car sales. In contrast, the UK saw a 27% rise to 28,000 units sold, and Ireland only a 7% increase to 2,200 units. European Commission President Ursula von der Leyen recently described the EU’s trade deficit with China—currently €1.18 billion per day—as having reached an unsustainable "tipping point." Trade officials from the EU and China, including Maroš Šefčovič and Wang Wentao, are set to meet in late October to seek a trade truce. Meanwhile, U.S. President Donald Trump and Chinese President Xi Jinping will meet in Washington for their third summit in 12 months. Trump had previously agreed to lift certain tariffs on Chinese imports in exchange for a temporary suspension of China’s export restrictions on rare earth minerals, which are vital to the automotive and tech industries. While a deal may not be finalized immediately, some observers believe the suspension of these restrictions could be announced at the Asia-Pacific Economic Cooperation (APEC) conference in November.