Chinese Automakers Rapidly Overtake Japanese Rivals in Hybrid Engine Technology

In recent years, while the global automotive industry has focused on electrification, several Chinese automakers have continued investing in internal combustion engine (ICE) technology—particularly achieving notable progress in hybrid electric vehicle (HEV) engines. Recent reports by Japanese media indicate that Chinese companies are rapidly closing the gap with Japanese automakers in engine thermal efficiency, power conversion efficiency, and intelligent applications—and even surpassing them in certain metrics. Chinese automakers such as Chery, Geely, and Changan have successively launched high-efficiency hybrid engines. Chery’s “Kunpeng Tianqing” hybrid system achieves a thermal efficiency of 48.57%, while Geely’s “i-HEV” engine reaches 48.41%. Both employ advanced technologies including high compression ratios, Miller cycle combustion, and ultra-high-pressure fuel injection, combined with intelligent energy management systems that optimize efficiency in real time based on environmental data. Changan, meanwhile, has mass-produced the world’s first HEV engine featuring 500-bar high-pressure fuel injection, significantly enhancing fuel atomization and combustion efficiency. These technological breakthroughs come amid ongoing market demand for hybrid vehicles. Data shows that in 2023, Japanese automakers held a 30% share of the global non-electric vehicle market, compared to China’s 20%. However, by 2038, sales of pure internal combustion engine vehicles are projected to decline by 36%, while hybrids are expected to retain approximately 15% of the market. Chinese automakers are actively targeting this transitional segment through a strategy combining “high-efficiency engines + intelligence.” Simultaneously, Chinese brands continue expanding their global sales and market influence. In 2025, Chinese automakers are projected to achieve global sales of 27 million vehicles, surpassing Japan’s 25 million for the first time and becoming the world’s largest automobile-producing nation. BYD and Geely have already overtaken Ford and Honda, respectively, entering the global top ten in vehicle sales. Currently, six Chinese automakers rank among the world’s top 20—a number exceeding Japan’s five. In overseas markets, Chinese brands are accelerating their entry into right-hand-drive regions such as Australia, Southeast Asia, and Hong Kong. In the first four months of this year, electric vehicles accounted for over 80% of newly registered private cars in Hong Kong, with rapid sales growth for brands like BYD, GAC, and Zeekr. During the same period, Toyota’s market share declined by 1.4% in Southeast Asia and 4.1% in Oceania, while Chery and BYD gained ground in these regions. Moreover, Chinese automakers are shifting from simple exports to localized overseas production—mirroring the globalization path taken by Japanese automakers in the last century—to further solidify their competitiveness in global markets.