As Chinese automakers accelerate global expansion, diversified powertrains and global adaptability become critical

On May 21, 2026, the 6th International Forum on Automotive Powertrain Systems was held under the theme “Diverse Drivetrains, Innovation-Led Growth,” bringing together representatives from government, industry, academia, and research institutions to focus on global powertrain technology pathways, market trends, and overseas expansion strategies. Data shows that global vehicle sales reached 96.5 million units in 2025, up 1.3% year-over-year; China’s sales totaled 34.4 million units, a 9.4% increase. Hybrid electric vehicles (HEVs, PHEVs, and REEVs combined) have surpassed battery electric vehicles (BEVs) globally in sales volume, becoming the dominant technological pathway. In China, hybrids accounted for 21.7% of the market in 2025, while the overall new energy vehicle (NEV) penetration rate reached 57%. Consumer choices are increasingly driven by product competitiveness rather than policy subsidies. In the mid- to large-size SUV segment, PHEV share is rising rapidly, while REEV share is declining. Hybrid adoption is growing across all regions—albeit with regional differences but consistent momentum: - Europe’s electrification penetration rate stood at 28% in 2025 and is projected to exceed 50% by 2030, with HEVs and PHEVs accounting for nearly 17%. - North America recorded a 21% electrification rate in 2025, expected to approach 50% by 2030, with hybrid growth significantly outpacing BEVs; hybrid penetration could reach 26% by then. - Southeast Asia saw a 15% electrification rate in 2025, forecast to rise to 36% by 2030, with HEVs and BEVs growing in tandem. - South America started later, with only a 2% electrification rate in 2025, projected to reach 16% by 2030, where hybrids will dominate. Multiple international automakers are adjusting strategies—scaling back BEV capacity forecasts and increasing hybrid allocations—due to consumer concerns over range and charging convenience, high BEV costs and profitability pressures, and delayed internal combustion engine (ICE) phase-out timelines in some countries. All-solid-state batteries remain constrained by cost and engineering bottlenecks, with penetration expected to reach only around 1% by 2030 and unlikely to exceed 5% before 2035. China’s auto exports continued robust growth, reaching 7.1 million units in 2025—a 20% year-over-year increase—marking the third consecutive year as the world’s top exporter. PHEV exports surged by 200%, making NEVs the core growth driver. In the first four months of 2026, exports totaled 3.28 million units, up 52% year-over-year, putting annual exports on track to surpass 10 million units. Chinese brands now hold a 27.9% global market share—nearly matching Europe (28.3%) and exceeding Japan (24.3%). Meanwhile, domestic automakers’ profit margins fell to 2.1%, while overseas export margins were over 40% higher, turning internationalization from a strategic option into a survival imperative. However, going global faces multiple challenges: 1. **High compliance barriers**: Stringent emissions standards such as Euro 7 (effective November 2026) and Tier 4 (early 2027) are imminent in Europe and the U.S., while China’s National VII standard is slated for full implementation in 2029. 2. **ESG requirements as hard mandates**: Complex regulatory frameworks—including the EU’s CSRD, CBAM, CSDDD, and the U.S. SEC’s climate disclosure rules—are becoming non-negotiable. 3. **Significant application differences**: Europe, for instance, imposes specific technical demands regarding trailer towing torque, fuel specifications, and performance in high-temperature, high-humidity environments. 4. **High localization costs**: Combined tariffs in some markets reach 45%–75%, often coupled with local content requirements for parts sourcing. Against this backdrop, powertrain suppliers with global systems capabilities are emerging as critical enablers. A joint venture formed by Geely, Renault, and Saudi Aramco—integrating Aurora Powertrains (formerly Geely’s) and Renault Horse Powertrain—has become a key player. Headquartered in the UK, it operates five R&D centers and 18 production bases, selling 8 million powertrains annually across 130 countries. The company offers end-to-end solutions covering compliance, R&D, supply chain, and after-sales services. Its technology portfolio spans ICE, hybrid, and range-extended electric (REEV) systems, with engine displacements from 1.0L to 3.0L and industry-leading thermal efficiency. Its hybrid transmissions offer 1–4 gear configurations, and motor power ranges from 75kW to over 300kW. It has mass-produced 900V high-voltage systems and developed CSC (Cold Start Catalyst) technology to meet Tier 4-Bin 30 standards, while keeping precious metal usage low. Its DHTS-X super-hybrid platform achieves over 80% commonality, enabling modular configuration. Through globally unified testing standards, the company enables “develop once, deploy globally.” It has established multi-center manufacturing and localized supply networks in nine countries to mitigate trade barriers and geopolitical risks. Experts note that China’s auto industry is transitioning from “technological self-reliance” to “global enablement,” and given the complexity of globalization, no single company can address all challenges alone—the collaborative role of third-party platforms is becoming increasingly vital.