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Carmakers rush to meet surging China demand for long-range hybrids
Carmakers rush to meet surging China demand for long-range hybrids

TimesLIVE

time28-04-2025

  • Automotive
  • TimesLIVE

Carmakers rush to meet surging China demand for long-range hybrids

Chinese carmakers and foreign rivals are launching ever more advanced long-range hybrids to meet rising demand in the world's largest car market. Unlike many other major markets, China treats EVs and hybrids as one 'new energy vehicle' sector where brands are competing to give consumers an array of electrified options with longer driving ranges. At the Shanghai auto show this week, for instance, Geely unit Zeekr unveiled the 9X — a large plug-in hybrid SUV that can travel on electric power alone for 400km before its petrol engine kicks in. That range is nearly as long as many fully electric vehicles and far longer than typical plug-in hybrids in the US, Europe and other markets. Chinese carmakers have also developed a thriving business in so-called extended-range electric vehicles (EREVs), which have small petrol engines that serve only as a generator to extend the range of their large batteries. Both EREVs and plug-in hybrids grew faster than pure EVs in the China market last year, pushing the whole electrified sector to about half of all new cars sold, according to data from the China Passenger Car Association. EREV sales jumped 79% to 1.2-million vehicles and plug-in hybrids soared by 76% to 3.4-million, while EV sales grew 23% to 6.3-million units. Fully electric models grew faster than both varieties of hybrids in the first quarter of this year and still lead China's new-energy sector. But the hybrid boom in China and globally has more traditional carmakers adding petrol-electric models to their line-ups after previously focusing solely on expanding EV offerings. Volkswagen plans a new vehicle platform for full EVs and EREVs as part of an effort to reverse its slowing sales in China, where all foreign carmakers have struggled. VW board member Ralf Brandstaetter said drivetrain flexibility was critical to the German carmaker's effort to 'find our edge'. Mercedes-Benz CEO Ola Kaellenius called hybrids 'definitely a trend in China' as he addressed reporters at the Shanghai show, predicting they would 'coexist with battery-electric vehicles for a longer period of time'. Transitional technology? Some carmakers — most notably Tesla — have dismissed hybrids as a transitional technology that only hinders the rapid EV transition needed to slow climate change. Many US and European environmentalists have endorsed that view. Some pure-play Chinese EV makers are also sceptical that hybrids will endure, particularly in China where government and industry have built a massive EV-charging network. 'It just doesn't make sense,' said William Li, CEO of EV maker Nio. But many Chinese carmakers are keen to give buyers whatever they want amid a consumer-price war that continues to challenge their profitability. Plug-in hybrids also provide a way for them to navigate around trade barriers in their prime expansion target of Europe, which has slapped tariffs on Chinese EVs and EREVs. Geely unit Lynk & Co said in February it will launch a plug-in hybrid SUV, the 08, in June with an electric-only range of 200km, the longest available in Europe. Felix Kuhnert, an automotive analyst at consultancy PwC Germany, called China's industry 'technologically less dogmatic' than some global competitors, taking the approach that 'if the customer wants more range in their electric car, then they should get it'. That fairly describes the position of Chinese EV maker Leapmotor, which has launched four EREV models even though its CEO Zhu Jiangming said typical EV driving ranges of about 500km allow consumers to 'buy an electric car without a problem'. The company views EREVs as an option for consumers willing to pay more for even more range. 'We think it's just for luxury cars,' a segment where consumers don't blink at paying an extra 20,000 yuan ($2,744) to alleviate range anxiety. More hybrids coming According to data from research firm JATO Dynamics, carmakers in China launched 16 new EREVs and 37 new plug-in hybrids in 2024, compared to 32 new fully electric models. Forecasts provided to Reuters by one major carmaker anticipate EREVs and plug-in hybrids will together account for about 35% of sales in China, the world's largest auto market, compared to about 45% for EVs. The sector has drawn investment from Chinese battery giant CATL, which in October launched its first battery devoted to extended-range hybrids, with a range of 400km. CATL said the battery is used by various Chinese EV brands, including Li Auto, and would be installed in nearly 30 models made by industry giants including Geely and Chery. Bo Yu, a China-market expert for research firm Jato Dynamics, predicted carmakers in the country would continue investing and innovating in the hybrid segment for the foreseeable future. 'We're going to see more of them,' she said.

Automakers rush to meet surging China demand for long-range hybrids
Automakers rush to meet surging China demand for long-range hybrids

Reuters

time25-04-2025

  • Automotive
  • Reuters

Automakers rush to meet surging China demand for long-range hybrids

SHANGHAI, April 25 (Reuters) - Chinese automakers and foreign rivals are launching ever more advanced long-range hybrids to meet rising demand in the world's largest auto market. Unlike many other major markets, China treats EVs and hybrids as one "new energy vehicle" sector where brands are competing to give consumers an array of electrified options with longer driving ranges. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. At the Shanghai auto show this week, for instance, Geely ( unit Zeekr unveiled the 9X - a large plug-in hybrid SUV that can travel on electric power alone for 400 km (249 miles) before its gasoline engine kicks in. That range is nearly as long as many fully electric vehicles and far longer than typical plug-in hybrids in the United States, Europe and other markets. Chinese automakers have also developed a thriving business in so-called extended-range electric vehicles (EREVs), which have small petrol engines that serve only as a generator to extend the range of their large batteries. Both EREVs and plug-in hybrids grew faster than pure EVs in the China market last year, pushing the whole electrified sector to about half of all new cars sold, according to data from the China Passenger Car Association. EREV sales jumped 79% to 1.2 million vehicles and plug-in hybrids soared by 76% to 3.4 million, while EV sales grew 23% to 6.3 million units. Fully electric models grew faster than both varieties of hybrids in the first quarter of this year and still lead China's new-energy sector. But the hybrid boom in China and globally has more traditional automakers adding gasoline-electric models to their lineups after previously focusing solely on expanding EV offerings. Volkswagen plans a new vehicle platform for full EVs and EREVs as part of an effort to reverse its slowing sales in China, where all foreign automakers have struggled. VW board member Ralf Brandstaetter said drivetrain flexibility was critical to the German carmaker's effort to "find our edge." Mercedes-Benz ( opens new tab CEO Ola Kaellenius called hybrids "definitely a trend in China" as he addressed reporters at the Shanghai show, predicting they would "coexist with battery-electric vehicles for a longer period of time." TRANSITIONAL TECHNOLOGY? Some automakers - most notably Tesla (TSLA.O), opens new tab - have dismissed hybrids as a transitional technology that only hinders the rapid EV transition needed to slow climate change. Many U.S. and European environmentalists have endorsed that view. Some pure-play Chinese EV makers are also sceptical that hybrids will endure, particularly in China where government and industry have built a massive EV-charging network. "It just doesn't make sense," said William Li, CEO of EV maker Nio ( opens new tab. But many Chinese automakers are keen to give buyers whatever they want amid a consumer-price war that continues to challenge their profitability. Plug-in hybrids also provide a way for them to navigate around trade barriers in their prime expansion target of Europe, which has slapped tariffs on Chinese EVs and EREVs. Geely unit Lynk & Co said in February that it will launch a plug-in hybrid SUV, the 08, in June with an electric-only range of 200 km, the longest available in Europe. Felix Kuhnert, an automotive analyst at consultancy PwC Germany, called China's industry "technologically less dogmatic" than some global competitors, taking the approach that "if the customer wants more range in their electric car, then they should get it." That fairly describes the position of Chinese EV maker Leapmotor ( opens new tab, which has launched four EREV models even though its CEO Zhu Jiangming said typical EV driving ranges of about 500 kilometres allow consumers to "buy an electric car without a problem." The company views EREVs as an option for consumers willing to pay more for even more range. "We think it's just for luxury cars," a segment where consumers don't blink at paying an extra 20,000 yuan ($2,744) to alleviate range anxiety. MORE HYBRIDS COMING According to data from research firm JATO Dynamics, automakers in China launched 16 new EREVs and 37 new plug-in hybrids in 2024, compared to 32 new fully electric models. Forecasts provided to Reuters by one major automaker anticipate EREVs and plug-in hybrids will together account for about 35% of sales in China, the world's largest auto market, compared to about 45% for EVs. The sector has drawn investment from Chinese battery giant CATL ( opens new tab, which in October launched its first battery devoted to extended-range hybrids, with a range of 400 km. CATL said the battery is used by various Chinese EV brands, including Li Auto ( opens new tab, and would be installed in nearly 30 models made by industry giants including Geely and Chery ( Bo Yu, a China-market expert for research firm Jato Dynamics, predicted automakers in the country would continue investing and innovating in the hybrid segment for the foreseeable future. "We're going to see more of them," she said. ($1 = 7.2895 Chinese yuan renminbi)

Volkswagen plans to commence cars export from China
Volkswagen plans to commence cars export from China

Yahoo

time23-04-2025

  • Automotive
  • Yahoo

Volkswagen plans to commence cars export from China

German automobile manufacturer Volkswagen plans to begin exporting vehicles from China to various regions including other Asian markets, South America, and the Middle East, reported Reuters, citing the company's China chief. This plan comes as car manufacturers in the Asian country are struggling with using unused manufacturing capacity. At an event held ahead of the Shanghai auto show, Volkswagen member of the board for China Ralf Brandstaetter said: 'It is fully clear that VW will not export to the US or Europe (from China) except for the Tavascan. But other markets are open like Asian markets, South America and the Middle East. 'They are open to products from China. We have competitive models and we are approaching doing export from China to these regions.' In a bid to maintain and grow its market share in China, where foreign carmakers are facing stiff competition from local manufacturers, Volkswagen is developing a new vehicle platform. This platform will cater to both battery-electric cars and electric vehicles (EVs) featuring range extenders. 'You can't predict what the share of each type of EV will be in 2030. We need to adapt our platforms to provide this flexibility,' Brandstaetter added. He noted that key factors for success in the Chinese market include effective cost management, assisted driving capabilities, and flexibility in drivetrain technologies. Volkswagen is set to showcase its first AI-powered, highly automated driving system (ADAS) at the Auto Shanghai event, scheduled from today to 2 May 2025. This advanced self-learning system is specifically designed to handle the complexity of China's traffic conditions. "Volkswagen plans to commence cars export from China" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio

VW plans exports from China to Asia, South America, Middle East
VW plans exports from China to Asia, South America, Middle East

TimesLIVE

time23-04-2025

  • Automotive
  • TimesLIVE

VW plans exports from China to Asia, South America, Middle East

Volkswagen plans to start exporting cars from China, aiming to sell in other Asian markets, South America and the Middle East, its China chief said on Tuesday, adding the carmaker was also ready to tackle domestic competition in the country. Carmakers in China, including Volkswagen, are grappling with how to make use of unused production capacity as annual demand for cars has stagnated at around 22-million cars since 2019. "It is clear VW will not export to the US or Europe (from China) except for the Tavascan. But other markets are open such as Asian markets, South America and the Middle East," Ralf Brandstaetter said, at an event ahead of the Shanghai auto show. "They are open to products from China. We have competitive models and we are approaching doing export from China to these regions." In China, where foreign carmakers are losing market share to a swathe of domestic rivals, Volkswagen plans a new vehicle platform for battery-electric cars and EVs equipped with range extenders, a small combustion engine which adds extra range. "You can't predict what the share of each type of EV will be in 2030. We need to adapt our platforms to provide this flexibility," Brandstaetter said, adding the ingredients for success in China included assisted driving capabilities, cost management and flexibility in drivetrains.

VW pitches comeback in China with new models, in-house assisted driving
VW pitches comeback in China with new models, in-house assisted driving

TimesLIVE

time22-04-2025

  • Automotive
  • TimesLIVE

VW pitches comeback in China with new models, in-house assisted driving

Volkswagen Group showcased five new models developed for China and an in-house assisted driving system on Tuesday in Shanghai as it fights to win back share in the fiercely competitive market. The new models include new VW cars and a new Audi range for the Chinese market. The German carmaker also plans to start exporting VW cars from China, aiming to sell some models in other Asian markets, South America and the Middle East, its China chief Ralf Brandstaetter said at an event before the Shanghai auto show starting on Wednesday. The VW brand presented three of its upcoming models at Tuesday's event. None are ready yet for mass production but are part of the group's plans to regain ground as foreign carmakers are losing market share in China, the world's biggest car market, to a swathe of domestic manufacturers. One, built by VW's joint venture with China's state-owned FAW, is the first model to be based on a new China-specific platform, the CMP, designed to reduce costs for entry-level smaller vehicles by 40%. Volkswagen, once the top seller of passenger cars in China, lost its crown to Chinese electric vehicle (EV) maker BYD last year after its sales slipped by 9.5% to just under 2.93-million cars, well below BYD's 3.84-million. Its market share in the country fell from 19% in 2019 to 14.5% last year. Volkswagen's premium Audi brand is fighting back with a range of new longer versions of its models designed for the Chinese market, where wealthier consumers with chauffeurs often sit in the back of their cars. On Tuesday, it also showcased the first vehicle of a new model line with a different logo from its famous four rings in a bid to win back sales. The new model line, simply named 'AUDI' in capital letters, will be targeted at younger consumers. Its first car for mass production, the E5 Sportback, will be built on a platform from its joint venture partner SAIC, a Chinese state-owned carmaker, and priced below the German carmaker's other models. Carizon, a joint venture between Volkswagen's software subsidiary Cariad and China's Horizon Robotics, demonstrated the carmaker's first in-house automated driving system to be integrated into one of its cars this year. A more advanced version system will be available in its entry-level cars from 2026.

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