China presses EU auto lobby chiefs to help resolve hybrid trade standoff

Chinese Commerce Minister Wang Wentao pressed the heads of Europe's two most influential automotive industry bodies on Monday to help broker a resolution to the escalating China-EU car trade dispute, days after Beijing rejected Brussels' request for voluntary curbs on hybrid vehicle exports.

Wang held a video call with Mercedes-Benz CEO Ola Källenius, who also serves as president of the European Automobile Manufacturers' Association (ACEA), and met separately with Hildegard Müller, president of Germany's Association of the Automotive Industry (VDA), according to Commerce Ministry readouts published Monday evening Beijing time.finance.yahoo+1

Hybrid Standoff

The outreach followed a pointed exchange between Beijing and Brussels over the surging flow of Chinese-made hybrids into Europe. The Financial Times reported on September 17 that the EU had asked China to voluntarily cap hybrid vehicle sales at roughly 15% of the bloc's market, down from more than a third currently. EU imports of hybrids from China rose from about 3,800 vehicles in October 2024 to 50,000 in July 2026, according to the report.ft+3

China's Commerce Ministry responded the next day by declaring it "firmly opposes" voluntary export restraints, calling them "a serious violation of WTO rules" that run "counter to the principles of the market economy and fair competition". Foreign Ministry spokesperson Guo Jiakun said China would "closely follow the EU's moves and take necessary measures to safeguard the legitimate rights and interests of Chinese companies".china+2

Beijing's Pitch to Industry

Neither of Monday's readouts mentioned hybrids or quotas directly, but Wang reinforced Beijing's stance. He told Müller that China backs investment by its automakers in Europe and wants to resolve disputes through dialogue under the China-EU trade consultation mechanism, based on "principles of compliance, balance and non-discrimination," Reuters reported. He told Källenius he hoped ACEA would "play a positive role" in pushing the EU to reach an agreement that complies with WTO rules and "takes into account the interests of both industries".eletric-vehicles+1

Källenius said ACEA "firmly supports free trade and market openness" and welcomes investment in Europe by Chinese carmakers and parts suppliers, according to the Chinese readout. ACEA and Mercedes-Benz have not published their own accounts of the call.eletric-vehicles

Broader Stakes

The lobbying comes as Chinese automakers accelerate plans for local production inside the EU. BYD expects mass production at its Hungarian plant in the fourth quarter, while Geely agreed in July to form a joint venture at Ford's ↘ 1.22% Valencia plant in Spain. The push is driven partly by the European Commission's proposed "Made in Europe" local-content rules for electric vehicles sold in the bloc.eletric-vehicles

Meanwhile, the European Chamber of Commerce in China described the country's position in global value chains as "indispensable" for global players, noting that 75% of surveyed European businesses rated their China production as more efficient than elsewhere.globaltimes

EU Trade Commissioner Maroš Šefčovič is scheduled to visit Beijing on October 8 and 9 for the next round of China-EU trade talks.eletric-vehicles