Safeguard
Action on Hybrid Passenger EV against Global Exporters Launched in EU
On 30 October 2026, the European Union notified the WTO's Committee on Safeguards
that it had initiated, on the same day (30 October 2026), a safeguard investigation
on imports of certain new hybrid vehicles.
1.
Investigation Initiated: The European
Commission initiated a safeguard investigation on 30 October 2026 into imports
of certain new hybrid vehicles.
2.
Products Covered:
o
New hybrid vehicles principally designed to carry nine
or fewer persons, including the driver.
o
Vehicles equipped with both internal combustion piston
engines and one or more electric motors.
o
Includes plug-in and non-plug-in hybrid vehicles.
o
Relevant CN Codes: ex 8703 40 10, ex 8703 50 00,
ex 8703 60 10 and ex 8703 70 00.
3.
Surge in Imports:
o
Imports increased from 957,965 units in 2023 to 1,423,691
units during 1 July 2025–30 June 2026.
o
The Commission reported a 49% increase over the
period.
4.
Reasons for Investigation:
o
Rapidly growing production in third countries.
o
Trade-restrictive measures adopted by several third
countries, making the EU an attractive export destination.
o
Risk of further increases in imports.
5.
Threat to EU Industry:
o
Rising imports have adversely affected the market share
and profitability of EU manufacturers.
o
Imported vehicles are entering the EU at prices significantly
below those of domestic producers.
o
Accelerating growth in low-priced imports and increasing
inventories could cause serious injury to EU producers in the near future.
6.
Submission of Evidence and Comments:
o
EU producers, importers, dealers, exporters and their
associations may submit information and supporting evidence.
o
Completed questionnaires and written submissions must
reach the Commission within 21 days of publication of the initiation notice.
o
Interested parties may also request an oral hearing
within the same 21-day period.
Key Takeaway: The EU has
initiated a safeguard investigation into rising imports of new hybrid vehicles,
citing a 49% increase in import volumes and potential serious injury to domestic
manufacturers. The investigation could lead to safeguard measures affecting hybrid
vehicle exporters to the EU.
[ABS News Service/04.11.2026]
Deadlines
and procedures to present evidence and views by interested parties
In order to obtain the information
necessary for the investigation, the Commission will collect questionnaire replies
from producers, associations of producers, importers and dealers in the Union. The
questionnaires will be published on the day of publication of this Notice on the
website of the Directorate-General for Trade and Economic Security https://tron.trade.ec.europa.eu/investigations/ongoing. The completed questionnaires
must reach the Commission within 21 days from the date of the date of publication
of this Notice.
All interested parties including
exporting producers, importers and dealers of the product concerned, their associations
and third country representations are invited to make known their views in writing,
submit information and to provide supporting evidence. Written submissions in a
free format should be submitted within 21 days of the date of publication of this
Notice in the Official Journal of the European Union.
All interested parties may request
to be heard by the Commission's investigation services. Any request to be heard
must be made in writing and within 21 days of the date of publication of this Notice
in the Official Journal of the European Union."
The notification is available in G/SG/N/6/EU/4.
A safeguard investigation seeks
to determine whether increased imports of a product are causing, or are threatening
to cause, serious injury to a domestic industry.
During a safeguard investigation,
importers, exporters and other interested parties may present evidence and views
and respond to the presentations of other parties.
A WTO member may take a safeguard
action (i.e. restrict imports of a product temporarily) only if the increased imports
of the product are found to be causing, or threatening to cause, serious injury.