China’s Hybrid Car Exports to EU Surge 204% Ahead of Import Cap

China shipped nearly 100,000 hybrid cars to the European Union in September, with customs data showing a 204.2 per cent year-on-year increase as shipments rose ahead of an import cap due to take effect at the end of the year.

The September total was 18.9 per cent higher than the previous month, customs data showed on Tuesday.

China’s hybrid car exports to the bloc tripled from a year earlier, while total passenger-car exports to the European Union rose 142.7 per cent over the same period.

The figures indicate that hybrid shipments grew considerably faster than China’s overall passenger-car exports to the bloc.

Carmakers bring shipments forward

Analysts said the rapid growth likely reflected carmakers sending vehicles ahead of high-level negotiations held in Beijing in early October.

The import cap was agreed during recent trade talks and is expected to take effect at the end of the year.

That timing has made the period before implementation important for exporters, as shipments are expected to remain elevated before the limits begin.

“Dealerships may have sought to get as many purchases in as possible before potential quotas or tariffs ahead of trade talks,” said Lynn Song, chief economist for Greater China at ING.

Her assessment links the surge to efforts by dealerships to complete purchases before possible quotas or tariffs were introduced.

The sharp September increase therefore came as China’s carmakers faced the prospect of restrictions following the trade discussions.

Source: South China Morning Post