STORY: Chinese automakers have ramped up exports of hybrid vehicles to Europe.

And they plan on sending more models to the key market.

The move exposes the limits of the European Union's electric vehicle tariff scheme.

It aims to protect its auto industry from cheap Chinese imports, but the tariffs don't apply to hybrid cars.

Analysts say that could see major brands like China's top EV maker BYD continue expansion in the region.

Some manufacturers are also shifting production and assembly to Europe to lower costs around tariffs.

One leading analyst expects China's hybrid exports to Europe to grow by a fifth in 2024, and even faster next year.

EU tariffs of up to 45.3% on Chinese EV imports came into effect in late October.

The bloc wants to counter what the European Commission calls unfair subsidies that helped create spare production capacity in China.

Data shows the anti-subsidy investigations have led some Chinese automakers to change their European strategy to focus more on hybrid exports.

Hybrids have gained in popularity as buyers consider them an affordable compromise between all-combustion and all-electric.

A Chinese trade body calculates hybrid exports to Europe more than tripled to 65,800 units from the same period a year earlier between July to October.

It reverses a trend of sliding sales until earlier this year and in 2023.

Exports of plug-in hybrids and conventional hybrids made up 18% of China's total vehicle sales to Europe in the third quarter - double the number of the first quarter.

The proportion of EV shipments fell by 4% during the same period.

Some analysts believe the trend is likely to gain further momentum.

They say China has stepped up its export drive to address overcapacity at home.

The U.S. and Canada has put 100% tariffs on Chinese-made EVs, which makes Europe a more obvious outlet for Chinese automakers.

The European Commission did not immediately reply to a request for comment on rising hybrid imports from China.

However, rising exports from China could trigger intense price competition in Europe's hybrid vehicle market.

But some experts caution Chinese firms are likely to tread more carefully for fear of causing another round of EU tariffs.