The Chinese electric vehicle market is witnessing a notable rise in the preference for hybrid vehicles, driven in part by their cost-effectiveness compared to traditional internal combustion engine models. Contrary to many global markets where hybrids typically command a premium, certain hybrids in China are priced lower than standard gasoline counterparts, and notably, up to 23% more affordable than battery-electric vehicles (BEVs).
Recent data from the China Association of Automobile Manufacturers, reported by Reuters, indicates a substantial 72% surge in plug-in hybrid (PHEV) sales during the January-September 2023 period, reaching 1,370,324 units, up from 798,164 in the previous year. Concurrently, sales of extended-range hybrids (EREVs) experienced a remarkable 157% increase, rising from 153,925 units to 395,390 units. In comparison, battery-electric vehicle sales grew by 14%, reaching 3,503,366 units, while traditional internal combustion engine (ICE) vehicle sales declined by 11% to 9,498,793 units.
Shanghai Jiao Tong University Institute of Intelligent Vehicle professor Xu Min commented on the trend, noting the increasing acceptance of vehicles equipped with both electric motors and gasoline engines. According to Professor Min, these technologies are viewed as highly complementary, addressing efficiency gaps in specific driving scenarios.
The market landscape for plug-in hybrids is largely dominated by BYD, with eight of the top ten best-selling PHEV models in the country. Li Auto leads the charge in extended-range hybrid vehicles. While demand for PHEVs and EREVs is on the rise, sales of traditional hybrids have declined by 15% this year to 525,096 units. This shift poses challenges for Toyota, which currently holds the top positions with the four most popular hybrid models.
As of the end of September, battery-electric vehicles constituted 60% of all electrified vehicle sales in China, followed by PHEVs with a 24% share, traditional hybrids at 9%, and EREVs at 7%. Hydrogen fuel-cell cars represented a minimal share, with only 300 units sold in the country this year.
