China Just Cut Subsidies for Hybrids. That’s a Mistake That Could Hand the World to Toyota.
China’s removal of tax exemptions for plug-in hybrids by 2027 could cripple its auto export strategy. Hybrids are the only viable option for markets with poor charging infrastructure, and losing domestic scale will erode cost advantages — handing the global hybrid market to Toyota. A classic case of premature policy tightening creating a self-inflicted wound.