Hybrid Cars Gain Popularity in China Amid Electric Vehicle Range Concerns
Hybrid cars are surpassing pure EVs in popularity in China due to range anxiety and cost considerations. Major manufacturers like BYD, Volkswagen, and Toyota are experiencing increased demand for hybrid models. Government incentives and advancements in technology are driving the shift towards hybrid vehicles.
Hybrid cars, capable of running on battery for short distances and switching to fuel for longer trips, now represent nearly half of new EV sales in China. Major manufacturers like BYD, Volkswagen, and Toyota have seen a surge in demand, with 396,000 hybrid cars sold to mainland buyers in July alone, accounting for 45.1% of total EV deliveries.
Zhao Zhen, a sales director at Wan Zhuo Auto in Shanghai, stated that hybrid cars are attracting young, first-time car buyers due to their cost-effectiveness, particularly during an economic downturn. Chinese consumers, who were cautious about spending after the pandemic, showed modest retail sales growth, with spending totalling 23.6 trillion yuan (US$3.3 trillion) in the first half of the year.
Plug-in hybrids, which include vehicles with extended-range technology, provide a more affordable alternative to pure EVs. These vehicles benefit from government incentives such as tax breaks and subsidies, which align with Beijing's clean energy goals.
Despite the current preference for hybrid vehicles, some consumers, such as Yvonne Qian, believe that EVs will become more popular in the future, particularly as charging infrastructure improves. Concerns about battery depletion in the winter have also influenced buyers to choose hybrid models over fully electric vehicles.
Hybrid cars, including battery electric vehicles (BEVs), are becoming increasingly popular, thanks to government incentives such as a 10% consumption tax waiver and subsidies for replacing gasoline-powered vehicles. This move is consistent with Beijing's commitment to clean energy and long-term net-zero targets.
Yvonne Qian, a Shanghai resident who works at a tech company in Hangzhou, discussed her thoughts on electric vehicles (EVs), expressing concerns about range anxiety when travelling between cities. She stated that advances in ultra-fast charging and battery swap technologies may make BEVs a more appealing option in the future.
Recent incidents, such as EVs becoming stranded in a snowstorm due to rapid battery depletion during the Lunar New Year in central Hubei province, have raised consumer concerns about the dependability of fully-electric vehicles for long distance travel.
Car dealers have noticed a shift towards hybrid models, driven by concerns about battery performance in cold weather. Some hybrid options have attractive prices and longer driving ranges, putting pressure on traditional automakers such as Volkswagen and General Motors.
BYD, a global leader in EV assembly, introduced enhanced plug-in hybrid technology in May to encourage the adoption of electric vehicles. Models such as the Qin L and Seal 06, which use 'dual mode' technology, have an impressive range of up to 2,100km on a single charge and full tank of petrol, addressing concerns about limited driving range.
Despite the current interest in hybrid vehicles, industry analysts predict a growing preference for pure EVs in tandem with global efforts to achieve zero emissions. Davis Zhang, a senior executive at Suzhou Hazardtex, emphasised the importance of major players focussing on developing fully-electric vehicles to align with future mobility trends and carbon-neutrality targets.
While some Chinese EV manufacturers prioritise hybrid technology to meet consumer demand, a few key players, such as Nio, Xpeng, and Jiyue, focus solely on pure electric vehicles. Companies such as Zeekr Intelligent Technology, Avatr Technology, and Hozon New Energy Automobile are also exploring hybrid models to meet changing market demands.
Hybrid vehicles accounted for 60% of new EV sales worldwide in May, with China leading the way. The country's hybrid and fully-electric car sales account for approximately 65% of global sales, indicating a broader shift towards cleaner transportation options.
Hybrid cars are surpassing pure EVs in popularity in China due to range anxiety and cost considerations.
Major manufacturers like BYD, Volkswagen, and Toyota are experiencing increased demand for hybrid models.
Government incentives and advancements in technology are driving the shift towards hybrid vehicles.
Source: SCMP