Several Chinese automakers have reportedly traveled to Beijing recently for talks with regulators on quotas for hybrid vehicle exports to the European Union, seeking export allocations under a China-EU trade understanding.

Cailian reported the development on Monday, citing multiple people familiar with the matter. The talks come less than 1 month after China and the EU announced an understanding on hybrid vehicle trade.

"The total quota is limited, so each company will not receive a large export allocation. All the automakers are currently working to secure their share," the report quoted 1 person familiar with the matter as saying.

The report did not identify the automakers involved, the export volumes each was seeking, or the specific criteria or outcomes of quota allocation.

The trade arrangements under discussion could affect Chinese automakers' product strategies in Europe. Hybrids were previously excluded from the EU's countervailing duties on China-made battery electric vehicles.

Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic held talks in Beijing on October 8-9, after which the sides announced an understanding on hybrid vehicle trade.

China's Ministry of Commerce said on October 12 that the sides had agreed to an arrangement allowing growth from the 302,000 hybrid vehicles the EU imported from China in 2025, ensuring room for Chinese companies' exports and steady growth.

The ministry did not disclose specific quotas or an implementation date at the time, but said China's allocation would be no lower than that of any other source of EU imports and that the arrangements should comply with World Trade Organization (WTO) rules.

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