China rejects EU hybrid car export limits: what happens next?
By Areeb Khan
China has rejected the European Union's request to limit hybrid car export to 15% of the market. Brussels is now considering temporary import quotas and additional tariffs as Chinese hybrid sales surge across Europe. The proposed restrictions remains under discussion, with negotiations set to detee
European Union or China ke between automotive industry mein ek baar phir tensions dekhe jaa sakte hai. Electric cars par tariffs impose karne ke baad, Brussels abb Asian giant China se import hone wale hybrid vehicles ki growth ko curb karna chahta hai, but isko lekar both sides ke between ek voluntary agreement karne ki efforts kiye jaa rahe hai, at present wo successful hoti hui nazar nahi aa rahi hai. China ke hybrid vehicle exports ki baat karein so reports ke according, China ne Europe ki request ko reject kar diya hai, jisme exports ko reduce karne ki baat ki gayi thi. After that European Commission ab ek or stricter alternative par consider kar rahi hai, jahan imports par unilaterally ek temporary limit impose ki jaa sakti hai. This change is important because abb Europe ko in vehicles ki entry ko restrict karne ke liye sirf Beijing ki willingness par depend nahi rehna padega. Brussels wants to lower the quota of Chinese hybrid to 15% European proposal ki baat karein toh yeh koi new thing nahi hai. As we have already reported, jab Brussels ne China se voluntarily apne hybrid vehicle export ko limit karne ke liye kaha tha, so iska main aim EU market mein Chinese hybrid vehicles ki presence ko significantly reduce karna tha. Negotiations mein discuss kiye gaye figures ki baat karein so currently Chinese hybrid vehicles European market mein ek-third se zyada share hold karte hue dekhe jaa sakte hai for this particular segment. European Union is share ko reduce karke approximately 15% tak laane ka aim kar rahi hai. Difference kaafi considerable hai, so practically dekha jaaye, it would mean that these vehicles par jo current tax rate lagaya jaa raha hai, usse more than half reduce karna padega. China ki baat karein so yahan par aap notice kar payenge that the country is not willing to voluntarily accept any such restrictions. In fact, Beijing pehle hi publicly apna opposition express kar chuka hai on limiting hybrid exports, as it believes that Chinese manufacturers ko globally compete karne ka poora right milna chahiye. Latest information ki baat karein so, two diplomats familiar with the talks ke according, yeh refusal Brussels ko ek different approach consider karne ke liye force kar sakta tha.
Image source: Motor.es
Europe may impose new tariff and quota European Commission ki baat karein so reports ke according, yahan par aap notice kar payenge that the commission a trade safeguard measure, jiske through maximum import volume establish kiya jaa sakta hai. Is mechanism ki baat karein so yahan par ek quota ke saath high tariffs bhi dekhe jaa sakte hai for vehicles jo established limit ko exceed karte hai. Iska main aim hoga ki imports ki growth ko temporarily control kiya jaa sake while a trade solution find kiya jaa raha hai. Depending on how the measure was designed, so iska impact sirf ek country ke manufacturers tak limited nahi reh sakta, rather Japan, South Korea or United Kingdom jaise other countries ke manufacturers par bhi dekha jaa sakta hai. In any case, abhi tak is quota ko establish karne ke liye koi official decision nahi liya gaya hai, na hi iski conditions ya duration ko finalise kiya gaya hai, yeh ek possibility hai jis par study ki jaa rahi hai, and agar isse implement kiya jaata hai so relevant trade regulations ko comply karna bhi important hoga. Brussels ki baat karein so this wouldn't be the first time that the European Union has taken trade defense measures against Chinese automobiles. In fact, EU pehle bhi China mein manufacture hone wale hybrid vehicles par additional tariffs lagane par consider kar chuka hai, although ultimately unhone tariffs impose karne ke instead ek negotiated solution explore karne ka decision liya tha. Hybrids are becoming more popular due to electricity pricing The origin of this new dispute ki baat karein so, yeh 2024 mein China mein manufactured electric cars par impose kiye gaye tariffs ke consequences se start hua tha. In terms of taxation, so these vehicles par additional taxes bhi lagaye gaye hai which can go up to 35.3% apart from the general 10% tariff. However, hybrid vehicles ko in extraordinary measures se exclude kiya gaya hai.
Image source: Motor.es
Chinese manufacturers ne iss difference ka advantage liya to strengthen their hybrid and plug-in hybrid models ki offering, especially competitively priced SUVs mein, jahan par affordable pricing ke saath multiple powertrain options bhi dekhe jaa sakte hai. Growth ki baat karein so yahan par aap notice payenge that the numbers have increased significantly. China se hybrid vehicle imports October 2024 mein around 3,800 vehicles the, jo july 2026 tak increase hokar approximately 50,000 vehicles dekhe jaa sakte hai. Monthly volume ki baat karein so less than two years mein hi ismein thirteen-fold se bhi zyada increase dekha jaa sakta hai, which means that monthly volume abb pehle ke comparison mein thirteen times se bhi zyada ho chuka hai. European manufacturers ke liye yeh situation concern generate kar rahi hai, because abb unhe Chinese vehicles ki continuously increase supply ke saath compete karna pad raha hai, while high development costs or industrial transformation ke expenses bhi face karne pad rahe hai. Beijing's negotiation will be crucial This new trade confrontation ki baat karein so, yeh us time saamne aaya hai jab European Commissioner for Trade, Maroš Šefčovič, China ke visit par hai. EU representative ki baat karein so wo October 8 or 9 ko Chinese authorities ke saath meetings karenge, jisme China ke Commerce Minister Wang Wentao ke saath meeting bhi inculde hai. Automotive industry ki baat karein so yeh discussions ka ek major topic rehne wala hai, although talks mein growing European trade deficit or China ki taraf se strategic raw materials ke exports par lagaye gaye restrictions ko lekar bhi discussions dekhe jaa sakte hai. European authorities ki baat karein so yahan par aap notice kar payenge that the trade imbalance with China has now crossed 1 billion euros per day, which is something that European authorities are particularly concerned about. European Commission ki taraf se dekha jaaye so yahan the Commission wants to secure concrete commitments before the upcoming meeting of European leaders, which is scheduled for October 15 and 16. Is meeting mein China ke saath trade relations bhi ek major issue ke form mein dekhe jaa sakte hai. Negotiations ke process ki baat karein so yahan par sab kuch scratch se start nahi kiya jaa raha hai, as Europe pehle bhi Chinese electric vehicles par tariffs ko replace karne ke liye minimum price commitments explore kar chuka hai. Yeh ek different approach hai jahan vehicles ki number ko directly limit karne ke instead, minimum pricing ke through competition ke conditions ko regulate karne ke efforts kiye jaate hai. Ab Beijing hybrids ko lekar kisi bhi tarah ka compromise accept karega ya nahi, or kya Brussels khud hi apne upar restrictions impose karne ki situation mein aa jayega, yeh dekhna kaafi interesting hoga. At present, hybrid cars European market mein current trade conditions ke under enter kar sakti hai. But agar negotiations fail ho jaate hai or European Commission quota establish karne ka decision leti hai, so BYD, MG ya Chery group ke brands ke liye Europe mein apni growth ko continue karna thoda difficult ho sakta hai, as new restrictions unke expansion mein ek additional obstacle create kar sakte hai. News Source: Motor.es