BYD, Geely and Chery welcome progress in China-EU trade talks over hybrid and electric vehicles

BYD, Geely Holding and Chery have welcomed the latest progress in China-EU trade talks, with all three Chinese automakers issuing statements on 14 October in support of resolving differences through dialogue.

The statements followed the second meeting of the China-EU Trade and Investment Consultation Mechanism, held in Beijing on 8 and 9 October.

The two sides reached an understanding on HEV and EV trade in line with World Trade Organization (WTO) rules and agreed to continue discussions on related issues in the EU's anti-subsidy case involving Chinese electric vehicles.

The China Association of Automobile Manufacturers (CAAM) also welcomed the outcome, saying the progress would help stabilise expectations and support the smooth operation of automotive supply chains.

What the three automakers said

BYD

BYD said the outcome of the consultations would help manage trade differences and prevent tensions from escalating.

The company added that the discussions took into account the circumstances and reasonable concerns of the automotive industries in both China and Europe, helping create a more stable and predictable environment for hybrid vehicle trade between the two markets.

Geely Holding

Geely Holding welcomed the progress and praised both sides for their efforts to resolve trade differences through intensive discussions based on mutual respect and equal consultation.

The company said it would continue to support open cooperation and operate in compliance with applicable laws and regulations, while serving consumers worldwide through technological innovation and its products.

Geely Holding also plans to strengthen engagement with European industry partners to support stable automotive supply chains and the transition towards greener mobility.

Chery

Chery said the Chinese and European automotive industries were highly complementary, with considerable scope for cooperation.

It added that closer cooperation would benefit businesses and consumers in both markets while helping maintain stable global automotive supply chains.

Chery welcomed further dialogue between China and the EU, saying both sides should continue working towards resolving differences and developing their automotive industry ties.

CAAM: Dialogue is preferable to confrontation

In its statement on 14 October, CAAM noted that rising trade protectionism and uncertainty in the global trading environment posed challenges for an automotive industry built on international cooperation.

The association highlighted three key points:

• Three guiding principles: The understanding on hybrid vehicle trade was based on respect for facts, non-discrimination and compliance with WTO rules.
• Avoiding further trade tensions: CAAM warned that an escalation in trade disputes could increase business costs, disrupt markets and ultimately harm consumers. It supported resolving differences through dialogue rather than confrontation.
• A model for resolving disputes: The association said the China-EU talks showed how trade differences could be addressed through consultation within the WTO framework.

For Malaysia and Southeast Asia

BYD and Chery already have a presence in Malaysia, while Geely is Proton's strategic partner. Developments in China-EU automotive trade could therefore be relevant to the wider regional industry, although the direct impact on Southeast Asian markets remains uncertain.

A more predictable trade environment could help Chinese automakers plan their overseas operations and investments. However, the latest understanding relates specifically to China-EU trade arrangements; it does not automatically mean lower vehicle prices or faster product launches in Malaysia.

For Malaysian buyers, the more immediate question is how automakers continue to develop their local line-ups, pricing and technology as competition in the electric and hybrid vehicle markets grows.