China's electric vehicle boom increasingly revolves around hybrids

BEIJING – Hybrid-powered cars are proving more popular than battery-powered cars in China, even as consumers shift away from gasoline-only cars, according to full-year data.

BYDby far the market leader, he said in a Deposit Wednesday It sold about 4.3 million passenger vehicles in 2024. Nearly 2.5 million of those vehicles were hybrid-powered, a reversal from 2023 when BYD sold slightly fewer hybrids than battery-only vehicles.

Teslawhich sells only battery-powered cars, is on track to sell more than 600,000 vehicles in China for the second year in a row, according to CNBC's calculations of China Passenger Car Association data. The Elon Musk-owned car company is expected to release 2024 numbers in the morning hours in the United States on Thursday.

“We still see growth in the Chinese market for electric batteries, but we see it as kind of capped,” said Joe McCabe, president and CEO of AutoForecast Solutions. It is expected that by 2031, there will still be demand for internal combustion engine vehicles, including hybrid-powered vehicles.

Close to Tesla Lee Carrwith a record 500,508 vehicles were delivered last yearThe company said in a filing Wednesday. The majority of the company's cars come with a fuel tank to extend the battery's driving range.

excellent“Chinese partner, Jump driveWhich sells battery-powered and hybrid cars Delivery of nearly 300,000 cars in 2024It aims to deliver 500,000 next year.

Chinese electric vehicle startups, which have so far sold only battery-powered vehicles, ranked lower in full-year deliveries. Electric car maker Remember 222,123 battery-powered cars sold, New 221,970 sold Exping 190,068 sold.

Nio and Xpeng's final tally for the year includes figures for the companies' lower-priced brands, which began deliveries in the second half of 2024.

In November, Xpeng revealed the same Hybrid range extender systemWhile Zeekr announced in August plans to launch its first hybrid car in 2025.

Electric car brands faced stiff competition last year with the launch of smartphone maker Xiaomi SU7 electric sedan in March. By the end of December, Xiaomi claimed to have already delivered more than 135,000 cars and has a set goal of delivering 300,000 cars in 2025.

Zeekr set a goal of 320,000 births for 2025, after missing its mark slightly The stated target is 230,000 Cars in 2024.

China's push to develop its own electric vehicles reached a turning point in July, with a share of new energy vehicles sold off This represents more than half of all passenger cars sold that monthAccording to the Passenger Car Association. New energy vehicles include battery-only cars and hybrid-powered cars.

This trend continued through November, which saw a Penetration rate 52.3%According to the association’s data. In July 2023, the penetration rate was 36%.

When looking at market growth, it's important to remember that China still has many incentives for locals to buy new energy vehicles, McCabe said. He added that pushing the market is part of China's efforts to achieve this Build local players Instead of relying on foreign brands.

Cities like Beijing are making it easier for residents to obtain license plates for new energy vehicles rather than gas-powered cars. Part of China's efforts to boost consumption in recent months has focused on subsidizing the purchase of new energy vehicles.

Hybrid vehicles also led light-vehicle sales in the United States in the second quarter, leading to combined sales The spread of hybrid and electric cars by 18.7%According to Wards Intelligence data published by the US Energy Information Administration.