EU deal sees need to build Chinese cars in Europe

The photo taken on January 10, 2024 shows electric cars for export waiting to be loaded on the "BYD Explorer NO.1", a domestically manufactured vessel intended to export Chinese automobiles, at Yantai port, in eastern China's Shandong province. (Photo by AFP)

FRANKFURT: Europe’s push to limit imports of hybrid cars will slow but not stop China’s expansion in the region, with automakers led by BYD Co expected to speed up their plans for local production instead.

Capping hybrid shipments to the European Union (EU) at 350,000 units – well below their expected sales this year – will hurt Chinese automakers’ growth more than the tariffs that failed to stop their fully electric vehicles, Bloomberg Intelligence (BI) analysts said yesterday. Tapping EU factories will help, they said.