Domestic Brands Rally to Enter HEV Arena, Vying for Global Hybrid Market Leadership

Beyond the current boom in battery-electric vehicles and intelligent technologies, HEVs (Hybrid Electric Vehicles) are making a quiet comeback. Leading Chinese自主品牌 such as Geely, Changan, and Great Wall have all begun rolling out HEV technologies and products. Previously, due to limited policy support and relatively high costs, HEVs held a domestic market share of less than 5% for an extended period. However, their advantages—including significantly lower fuel consumption (over 30% better than conventional internal combustion engine vehicles), no range or charging anxiety, and enhanced battery safety—are regaining prominence amid soaring fuel prices and the phasing out of preferential policies for plug-in hybrids (PHEVs). Following adjustments to China’s new-energy vehicle purchase tax policy in 2026, the cost advantage of PHEVs is expected to diminish, further boosting HEVs’ market appeal. Additionally, consumers in tier-3 and tier-4 cities prioritize reliability and convenience—needs that HEVs effectively address. Moreover, HEVs offer Chinese automakers a strategic buffer against the profitability pressures associated with pure electric vehicles and models equipped with large batteries. They also represent a promising new avenue for overseas expansion. Currently, the global HEV market remains dominated by Toyota and Honda, with Chinese brands accounting for only around 17% of the share. Leveraging technological innovation, robust supply chains, and platform-based cost reductions, Chinese automakers are accelerating their entry into this segment, advancing a multi-technology development strategy and strengthening their influence in the global hybrid vehicle market.