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April 28, 2022

Why hybrid vehicles are booming in China

The “Energy-saving and New Energy Vehicle Technology Roadmap 2.0” for the automotive industry released on October 27th, 2020 by the China Society of Automotive Engineers (China-SAE) sets the target to achieve peak carbon emissions in the automotive industry in 2028 and decrease carbon emission by 20% until 2035.

China’s New Electric Vehicle (BEV and PHEV) market has experienced an exponential growth during last year with 169% growth reaching a share of 14.8% (2.98 mil units).

Moreover, China’s Hybrid Electric Vehicle (HEV) market has grown by 43% (586 thousand units = 2.9% market share) in 2021 with almost all leading Chinese OEMs releasing own Hybrid Electric Vehicles with Dedicated Hybrid Transmission (DHT-HEVs).

With this different market perspective, and favoured by current legislation, most Chinese OEMs have chosen an electrification strategy that puts hybrid systems equal besides Battery Electric Vehicles (BEV) at the heart of their product strategy.

As a result, Chinese OEMs are making investments into combustion engines (DHE) and transmission system (DHT) as well as shared technologies across xHEVs and BEVs.

For more detailed information, please check out our study or contact us directly.

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