The European Commission has confirmed a quota limiting Chinese hybrid electric vehicle imports to 350,000 units annually, according to The Guardian. The measure will cut Chinese market share to roughly 3 percent.

The quota represents a sharp reduction. About 800,000 battery and plug-in hybrids are expected to be sold in the EU this year, the source states. The new limit will therefore halve current import volumes.

Brussels justified the measure using World Trade Organization rules to impose the quota quickly. The source does not detail the WTO mechanism invoked or provide timeline information for implementation.

The move reflects growing EU concern over surging Chinese automotive competition. The Guardian reported separately that Volkswagen's chief backed the EU plan to strengthen domestic European industry, suggesting automaker support for import restrictions.

The source provides no comment from Chinese authorities, details on EU internal debate, or analysis of trade friction implications. It does not explain the reasoning behind the specific 350,000-unit threshold or how the EU will enforce the quota.