Europe's Largest Automakers to Benefit from New Measures Against Hybrid Imports

0821 GMT - The European Commission is implementing measures to restrict the import of hybrids from China into Europe, which should support mass automakers like Renault, Volkswagen, Stellantis and suppliers, J.P. Morgan writes. The bank says the rules will reinforce pricing power in Europe and possibly provide some modest improvement in market share across the largest European manufacturers. Hybrid imports are being limited to 350,000 units from an estimated run rate of 800,000, it adds. J.P. Morgan expects Chinese automakers like BYD, Leapmotor, Geely and Chery to rapidly increase European production, replacing imports with local assembly. The bank says that according to reports, instead of a total phase-out of internal combustion engines, the new pact scales back the 2035 carbon dioxide reduction target to 90% without requiring alternative fuel offsets.