The Leapmotor range-extending vehicle is on display at the company’s headquarters in Hangzhou, China, on June 22, 2024.
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BEIJING – Hybrid-powered vehicles are proving more popular than battery-powered ones in China, even as consumers move away from gas-only cars, full-year data shows.
BYDfar leading on the market, said ua submission wednesday it sold about 4.3 million passenger cars in 2024. Nearly 2.5 million of those vehicles were hybrid-powered, a reversal from 2023 when BYD sold slightly fewer hybrid cars than battery-only vehicles.
Teslawhich sells battery-only cars, is on track to sell more than 600,000 vehicles in China for the second straight year, according to CNBC calculations based on data from the China Automobile Association. Elon Musk’s car company is expected to report 2024 figures in the morning on Thursday in the US.
“We still see growth in the Chinese market for electric batteries, but we see that as a limitation,” said Joe McCabe, president and CEO of AutoForecast Solutions. He predicts that until 2031, there will still be demand for internal combustion engine vehicles, including hybrid-powered cars.
It is right behind Tesla Li Carwith minutes 500,508 vehicle deliveries last yearthe company said in a filing Wednesday. Most of the company’s cars come with a fuel tank to extend the driving range of the battery.
Stellantis‘ Chinese partner, skip motorwhich sells battery-powered and hybrid cars, said that almost 300,000 cars delivered in 2024and it aims to deliver 500,000 in the coming year.
Chinese electric car startups that have until now only sold battery-powered vehicles ranked lower in full-year shipments. Manufacturer of electric cars Zeekr 222,123 battery-powered vehicles were sold, He didn’t sold 221,970 i Xpeng sold 190,068.
The final tally for Nio and Xpeng for the year includes figures for the companies’ lower-priced brands, which began shipping in the second half of 2024.
Xpeng revealed its in November hybrid range extender systemwhile in August Zeekr announced plans to launch its first hybrid car in 2025.
Electric car brands faced tougher competition last year, with smartphone company Xiaomi launching its own Electric sedan SU7 in March. By the end of December, Xiaomi claimed that it had already shipped more than 135,000 cars and had set a target of shipping 300,000 cars in 2025.
Zeekr has set a target of 320,000 deliveries by 2025, after narrowly missing its reported target of 230,000 cars in 2024.
The rapid rise of new energy cars
China’s push to develop its own electric cars reached a tipping point in July, with a share of new energy vehicles sold accounting for more than half of all passenger cars sold in that monthaccording to the association of personal vehicles. New energy vehicles include battery-powered cars and hybrid cars.
The trend persisted until November, in which a penetration rate of 52.3%according to the association’s data. In July 2023, the penetration rate was 36%.
Looking at the market’s growth, it’s important to remember that China still has plenty of incentives for locals to buy new energy vehicles, McCabe said. He added that market pressure is part of China’s efforts to build domestic players instead of relying on foreign brands.
Cities like Beijing are making it easier for residents to get license plates for new energy vehicles instead of gas cars. Part of China’s efforts to boost spending in recent months has been aimed at subsidizing the purchase of new energy vehicles.
Hybrids also boosted US light vehicle sales in the second quarter, bringing in a combined penetration of hybrid and battery-electric cars at 18.7%according to Wards Intelligence data published by the US Energy Information Administration.
