Chinese automakers are increasing hybrid vehicle exports to Europe, circumventing the EU’s tariffs on electric vehicles. The EU’s new tariffs, aimed at countering subsidies on Chinese EVs, do not apply to hybrids, prompting brands like BYD and Geely to focus on this segment. From July to October, hybrid exports to Europe tripled, accounting for 18% of China’s vehicle sales to the region in the third quarter. Some manufacturers are also shifting production to Europe to mitigate tariff impacts.