Hybrid-Powered Vehicles Outsell Battery-Only Ones in China
Hybrid-powered vehicles have proven more popular than battery-only ones in China, despite a shift away from gas-only cars, according to full-year data. BYD, the market leader, sold around 4.3 million passenger cars in 2024, with nearly 2.5 million of those vehicles being hybrid-powered.
Tesla, which sells only battery-only cars, is on track to sell over 600,000 vehicles in China for the second-straight year. Li Auto, which sells cars with a fuel tank for extending the battery’s driving range, delivered a record 500,508 vehicles last year.
Stellantis’ Chinese partner, Leapmotor, delivered nearly 300,000 cars in 2024 and aims to deliver 500,000 in the year ahead. Chinese electric car startups, such as Zeekr, Nio, and Xpeng, which have only sold purely battery-powered vehicles, ranked lower in full-year deliveries.
The electric car brands faced stiff competition in the past year with smartphone company Xiaomi launching its SU7 electric sedan in March. Xiaomi claimed it had already delivered over 135,000 of the cars and has set a target of delivering 300,000 cars in 2025.
China’s push to develop its own electric cars has led to a rapid increase in new energy cars, with the share of new energy vehicles sold accounting for more than half of all passenger cars sold in July. The trend persisted through November, with a penetration rate of 52.3%. Cities such as Beijing are making it easier for residents to get license plates for new energy vehicles rather than fuel-powered cars, and the government has been subsidizing new energy vehicle purchases to boost consumption.
According to AutoForecast Solutions, hybrid-powered cars will still be in demand by 2031, and the company forecasts that the Chinese market will continue to grow, but at a slower pace.