Hybrids lead EV growth in China

Battery-powered vehicles in China have shown increasing popularity over gasoline-powered ones, according to annual data released on Tuesday. Despite consumers shifting away from gas-powered vehicles, electric vehicles have maintained strong growth.

Market leader BYD said it sold about 4.3 million passenger vehicles in 2024. Of that number, 2.5 million were battery hybrids, a sharp turnaround from 2023, when hybrids were fewer than all-electric vehicles.

Tesla, which sells all-electric vehicles, is on track to sell more than 600,000 vehicles in China for the second year in a row. Tesla is expected to reveal its 2024 sales figures in the coming hours, according to CNBC

“There is still growth in the Chinese market in terms of all-electric vehicles, but we are seeing some kind of a ceiling,” said Joe McCabe, chairman and CEO of AutoForecast Solutions. Demand for internal combustion engine vehicles, including hybrids, is expected to continue through 2031.

As for Chinese companies, BYD said in its report that Li Auto came in second after Tesla, recording record deliveries of 500,500 vehicles in 2024.

Leapmotor, Stellantis’ Chinese partner, delivered about 300,000 vehicles in 2024, and is targeting 500,000 next year.