China is betting on hybrid cars, challenging Japan's global leadership
Chinese automakers are stepping up efforts to gain a bigger share of the lucrative hybrid electric vehicle (HEV) market, which has long been dominated by Japanese manufacturers, reviving technology that had previously been largely unused in China, according to Nikkei. Geely recently unveiled two models based on its latest hybrid platform, claiming fuel efficiency of 2.22 liters per 100 kilometers, which is about 12% better than the flagship Toyota Prius hybrid.
Other Chinese concerns, including GAC, Great Wall Motor, Changan, and Chery, also announced advances in hybrid technology this year, with GAC emphasizing the driving experience similar to driving an electric car without the need for charging infrastructure.
Hybrid electric vehicles (HEV) have been sidelined in China as they have been excluded from the government's subsidy program for electric vehicles, while plug-in hybrids and battery-powered electric vehicles have received benefits in the form of "green" license plates and tax breaks. However, this political environment is changing. The reduction of tax incentives for electric vehicles and plug-in hybrids from 2026, as well as stricter fuel economy rules providing 3.3 liters per 100 km by 2030, are forcing automakers to review their model ranges.