After gaining EV dominance, Chinese carmakers shift goal to take on full-hybrid behemoths

Chinese automakers, already pioneers in electric vehicle (EV) technology, are now targeting the full-hybrid vehicle market to challenge established international brands such as Toyota and Honda. Companies like Geely Auto and Changan Automobile have reported strong sales of hybrid electric vehicles (HEVs), which have attracted domestic consumers away from traditional brands.

Chen Jinzhu, CEO of Shanghai Mingliang Auto Service consultancy, noted that Chinese-developed HEVs have an advantage due to the manufacturers' expertise in intelligent features and computing power, particularly in smart driving and in-car entertainment. Unlike pure electric or plug-in hybrid vehicles, HEVs utilize an internal combustion engine to power a generator, which either charges batteries or directly drives electric motors, making them less eligible for government incentives in China.

After experiencing success with HEV models in regions with limited power supply, Chinese automakers are now focusing on further developing this technology. The HEV segment has traditionally been dominated by international brands, with about 1.2 million units sold annually, accounting for approximately 5% of total car deliveries in China.

Geely Auto, the second-largest carmaker in mainland China, recently unveiled its new i-HEV intelligent hybrid system, which boasts superior technical specifications compared to Japanese products. This innovation, powered by artificial intelligence energy management, aims to surpass existing models in fuel efficiency, consuming an average of 2.22 liters of fuel per 100 kilometers during a highway test.

Geely plans to deliver 30,000 HEVs monthly in China by the end of 2026, with exports to international markets expected to begin in 2027.