The wave of new energy vehicles (NEVs) is reshaping the landscape of China's automotive market.
Recently, with the release of its Q3 financial report, BYD has surpassed the former leader SAIC Motor in sales and revenue, claiming the title of China’s largest automaker.
In the first three quarters of 2024. BYD achieved cumulative sales of 2.7479 million vehicles, a year-on-year increase of 32.13%, while SAIC Motor sold 2.6493 million vehicles, a decline of 21.56%. In October alone, spurred by trade-in subsidies and other incentives, the auto market became even more dynamic. BYD’s monthly sales exceeded 500.000 vehicles for the first time, setting a new record for Chinese automakers. As BYD surged ahead and SAIC Motor saw a decline, BYD officially became the largest car manufacturer in China. Judging by the current trend, the gap between BYD and SAIC Motor is expected to widen further.
BYD’s success can largely be attributed to its bold pivot toward NEVs, particularly its heavy investment in plug-in hybrid models, establishing a technological edge in this segment.
According to BYD's Q3 report, the company sold 2.75 million NEVs in the first three quarters of 2024. with plug-in hybrid models accounting for 1.57 million units, nearly 60% of the total. In terms of growth, sales of BYD’s pure electric vehicles increased by 11% year-on-year, while plug-in hybrid vehicle sales soared by 53%. It’s clear that the surging popularity of plug-in hybrid models has cemented BYD's dominance in the current market.
Looking at the broader NEV market, the plug-in hybrid segment is rapidly becoming the focal point of development. In the first half of this year, the sales growth rate for pure electric vehicles was approximately 10%, while plug-in hybrid sales skyrocketed by 80%—nearly eight times that of pure electric vehicles.
This data demonstrates that plug-in hybrids, once dismissed as a "transitional product," are now overtaking pure electric vehicles in popularity.
Amid this rapid growth, more NEV manufacturers are entering the hybrid segment.
For instance, Zhijie has announced plans to develop range-extended hybrid versions of its vehicles, while Volkswagen plans to expand its lineup of plug-in hybrid models. GAC Aion’s general manager revealed plans to enhance its product offerings with plug-in hybrids and range-extended models. Meanwhile, Avatr has officially launched its range-extending technology brand "Kunlun" and is planning at least three range-extended hybrid models. Zeekr is expected to debut a large flagship SUV with a super hybrid powertrain in Q4 2025.
As more automakers join the fray, the price of plug-in hybrids has gradually dropped to a range comparable to conventional fuel vehicles—between 100.000 and 200.000 RMB. The fuel consumption of the latest plug-in hybrid technology has reached as low as 3 liters per 100 kilometers, equivalent to a cost of less than 0.3 RMB per kilometer. Compared to the high electricity costs of pure EVs, plug-in hybrids offer a highly cost-effective alternative, further boosting their popularity.
Plug-in hybrids also have certain advantages over pure EVs when it comes to maintenance and ownership.
Unlike the revolutionary electric powertrain of pure EVs, plug-in hybrids retain some traditional internal combustion engine components, such as engines and transmissions. For many repair shops, these are familiar systems they have dealt with for decades, making repairs straightforward. Plug-in hybrid owners can conveniently choose local repair shops for regular maintenance without worrying about the high costs or difficulties associated with manufacturer-specific service centers.
A Chinese Academy of Sciences academician once stated that while the electrification of vehicles is an inevitable trend, achieving full electrification in China's automotive market may take another decade or more. It is estimated that in the next 5 to 10 years, plug-in hybrids will continue to gain market share within the NEV segment, potentially reaching 40%.
For repair professionals, this means they can focus on providing maintenance services for plug-in hybrids while preparing for the growing presence of pure EVs, ensuring their shops are well-positioned for the future.
