A significant shift is underway in China’s automotive market as more consumers opt for hybrid vehicles over pure electric cars. The trend is driven by various factors, including range anxiety, cost considerations, and many buyers’ economic challenges.
This change in consumer behavior is reflected in the latest statistics from the China Passenger Car Association (CPCA), which reveal that nearly half of the new electric vehicle (EV) sales this year have been hybrids.
In July alone, major automakers like BYD, Volkswagen, and Toyota sold 396,000 hybrid cars to customers in mainland China, making up 45.1 percent of total EV sales. This represents a substantial increase from the 34.3 percent share recorded in the same month last year.
Hybrid vehicles, which can operate on battery power for short distances and switch to fuel for longer trips, are gaining popularity among young, first-time car buyers who find them more economical, especially during an economic slowdown.
The economic climate in China has led to more cautious consumer spending. Retail sales in the year’s first half grew by only 3.7 percent, significantly lagging behind the national economic growth rate of 5 percent. This cautious spending behavior has contributed to the rising demand for hybrids, which are considered more cost-effective than pure EVs.
Hybrids, including battery electric vehicles (BEVs) that use a small internal combustion engine to extend range, are about 10 percent cheaper than fully electric cars, making them an attractive choice for budget-conscious buyers.
Government incentives are also contributing to this shift. Hybrid vehicles benefit from tax waivers and subsidies to replace petrol-powered cars as part of Beijing’s broader push towards clean energy and its long-term net-zero targets.
The reliability of hybrids in challenging conditions, such as winter weather, has further boosted their appeal. Earlier this year, videos of electric cars stuck in a snowstorm in Hubei province went viral, reinforcing concerns about the reliability of fully electric vehicles for long-distance travel.
In response to the growing demand, manufacturers ramp up their hybrid offerings. BYD, the world’s leading EV maker, recently introduced new models like the Qin L and Seal 06, which feature advanced plug-in hybrid technology.
These cars can travel up to 2,100 kilometers on a single charge with a full petrol tank, addressing concerns about range limitations. Priced competitively, these models offer an attractive alternative to traditional fuel-powered vehicles from brands like Volkswagen and Toyota.
Despite the surge in hybrid sales, some industry experts believe this trend may be temporary. The long-term focus remains on fully electric vehicles, especially as China continues to push for zero-emission transportation.
However, for now, the demand for hybrids is strong, and even premium EV makers like Zeekr, Avatar Technology, and Hozon New Energy Automobile are expanding their hybrid offerings to capture a larger market share.
Globally, hybrids are also gaining traction, making up 60 percent of new EV sales in May. In China, the combined sales of hybrid and fully electric cars account for about 65 percent of the total global market, underscoring the country’s pivotal role in the future of the automotive industry. As consumer preferences evolve, the Chinese market will likely remain a key battleground for hybrid and fully electric vehicles.
