Hybrid Sales Shooting Up In China, Will The EV Price War Finally End Now?
With Stellantis also planning cheaper batteries, are hybrid cars the future?
As Michael Scott would say, “Well, well well, how the turntables…” Fans of ‘The Office’ would have loved that, but references aside, while so many electric vehicle (EV) manufacturers in China continue a very intense price war, it appears that the winners are hybrid vehicle manufacturers. Let’s review.
Well, Toyota called it long ago, as the brand never fully shifted to EVs but instead focused on hybridisation. Now it seems that this has paid off. Not only did EV sales start to slip in Europe and the U.S.A, but the price war in China has also negatively affected Chinese and international EV makers alike.
Moreover, Stellantis also plans to build an EV battery plant with China’s CATL in Europe, its fourth one in the region, as the European carmaker seeks to make cheaper batteries and more affordable EVs. As if EVs were not cheap enough in China, this new Stellantis plant might even put many Chinese EV makers out of business.
Experts also warn that foreign brands are now facing a growing threat from Chinese rivals that have conquered the Chinese hybrid market and are looking overseas, emboldened by their strength as the world’s lowest-cost EV producer after heavy investment in supply chains but this might turn on its head soon.
On top of that, In the United States, most hybrid vehicles cost about USD1,500 to USD2,000 (about RM7,004 to RM9,338) more than internal combustion engine (ICE) models, but in China, some hybrids are offered at a slight discount compared to ICE models and can be as much as 23 percent cheaper than pure EVs.
In a turn of events that almost nobody saw coming, Li Auto, the most popular extended-range hybrid seller in China, has thousands of customers waiting for delivery of its new large SUVs, a stark contrast with many other brands grappling with an unsold inventory buildup. Well, it appears the end of EVs is near then.
In the Plug-In Hybrid Electric Vehicle (PHEV) market, Chinese automaker, BYD has cemented its position as the most dominant player, with eight of the 10 top-selling PHEVs in China among its offerings. This is good news for Malaysia too as it means we might see more hybrids from the brand in addition to its EVs here.
Well, I did say that the hype around EVs would die down at some point and it appears this is coming sooner rather than later. What do you guys think? I think Toyota was absolutely right when it said hybrids are the real answer.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images
Related Posts
More Chinese Pickup Trucks Coming To Malaysia In 2024 →
Mitsubishi Xpander Still Malaysia’s No. 1 Non-National MPV →
Why Did Dodge “Go Electric” But Keep The Turbo Inline 6 And Ditch The V8? →
