Chinese Automakers Accelerate Deployment of HEV Technology

[Technology Trends] Leading Chinese automakers are intensively rolling out HEV (Hybrid Electric Vehicle) technologies, completing the final piece of the electrification puzzle for internal combustion engine vehicles.

Core Development: HEVs Emerge as a Key Lever for Overseas Expansion and Market Penetration

Automakers such as Geely, Changan, and Great Wall have successively launched next-generation HEV systems, achieving WLTC fuel consumption as low as 2–3 liters per 100 kilometers. Although HEVs currently hold a limited market share in China, they are growing rapidly in Europe (projected sales of 4.57 million units in 2025, capturing 35% market share), the United States (sales of 2 million units, up 26.6% year-over-year), and Southeast Asia.

Strategic Foundation: Strengthening a Dual-Track Technology Portfolio

Building on existing strengths in battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), HEVs now serve as a critical complement for Chinese automakers to expand globally and reach non-charging customer segments. Toyota sold 623,000 HEVs in China in 2025, accounting for 35% of its total sales there—a clear indicator of strong market acceptance.

Industry Impact: A Sino-Japanese HEV Competitive Landscape Begins to Take Shape

With Chinese brands entering the HEV space, the global HEV market is shifting from Japanese dominance toward a new era of Sino-Japanese competition and collaboration, particularly leading to direct rivalry in emerging overseas markets.