The rise of electric cars in China is increasingly due to hybrids

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

BYDby far the market leader, stated in a presentation on Wednesday sold about 4.3 million passenger cars in 2024. Nearly 2.5 million of those vehicles were hybrid-powered, unlike 2023, when BYD sold slightly fewer hybrid cars than battery-only vehicles.

teslawhich sells cars powered solely by batteries, is on track to sell more than 600,000 vehicles in China for the second year in a row, according to CNBC calculations based on data from the China Passenger Car Association. Elon Musk’s car company is expected to release 2024 figures in the US morning hours on Thursday.

“We still see growth in the Chinese market in terms of electric batteries, but we see it as a limit,” said Joe McCabe, president and CEO of AutoForecast Solutions. It predicts that by 2031 there will continue to be demand for vehicles with internal combustion engines, including those with hybrid propulsion.

Behind Tesla is li carwith a record 500,508 vehicle deliveries last yearthe company said in a document filed Wednesday. Most of the company’s cars come with a fuel tank to extend the battery range.

Stellar‘Chinese partner, jump motorwhich sells battery-powered and hybrid-powered cars, said that delivered almost 300,000 cars in 2024and aims to deliver 500,000 in the next year.

Chinese electric car startups that have so far only sold vehicles powered exclusively by batteries ranked lower in full-year deliveries. electric car manufacturer Zeekr sold 222,123 battery-powered vehicles, child sold 221,970 and xpeng sold 190,068.

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

Xpeng in November revealed its hybrid range extension systemwhile Zeekr announced plans in August to launch its first hybrid car in 2025.

Electric car brands faced tougher competition last year and smartphone company Xiaomi launched its SU7 electric sedan in March. At the end of December, Xiaomi stated that it had already delivered more than 135,000 cars and had set a goal of delivering 300,000 cars in 2025.

Zeekr has set a target of 320,000 deliveries by 2025, after slightly missing its target. reported target of 230,000 cars in 2024.

China’s push to develop its own electric cars reached a tipping point in July, with the share of new energy vehicles sold. represents more than half of all passenger cars sold that monthaccording to the passenger car association. New energy vehicles include solely battery-powered cars and hybrid vehicles.

The trend persisted until November, when there was a 52.3% penetration rateaccording to association data. In July 2023, the penetration rate was 36%.

When looking at the growth of the market, it is important to remember that China still has many incentives for locals to buy new energy vehicles, McCabe said. He added that the push to the market is part of China’s efforts to train national players instead of depending on foreign brands.

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

Hybrids also boosted U.S. light vehicle sales in the second quarter, leading to a combined increase The penetration of hybrid and battery electric cars reaches 18.7%.according to Wards Intelligence data published by the US Energy Information Administration.