Hybrid Cars Surge in Popularity Amid EV Range Anxiety: A Shift in China’s Auto Market

Inexpensive and effective: hybrid vehicles are becoming more popular in China as concerns over the battery life of electric vehicles increase. In July, hybrids accounted for 45.1% of all electric vehicle deliveries in mainland China, a significant increase from the 34.3% they represented just a year prior, based on industry statistics.

Almost half of the new electric vehicle (EV) sales this year are hybrid cars, which have the capability to operate on battery power for short trips and shift to gasoline for extended journeys. This surge in demand has prompted numerous manufacturers to accelerate their development and production processes.

In July, companies such as BYD, Volkswagen, and Toyota sold 396,000 hybrid vehicles to customers on the mainland, accounting for 45.1% of the total electric vehicle sales, as reported by the China Passenger Car Association (CPCA). This is an increase from the 34.3% share they held during the same period last year.

"Hybrid vehicles are a more cost-effective option for numerous young individuals purchasing their first car," stated Zhao Zhen, a sales executive at Wan Zhuo Auto, a dealership located in Shanghai. "They have unexpectedly profited from the economic downturn."

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Official data indicates that Chinese shoppers are exercising restraint in their expenditure, resulting in weak growth in retail sales in the years following the pandemic. The prolonged downturn in the housing market and increasing unemployment have led many to prioritize paying off their mortgages ahead of time, reducing debt instead of increasing spending.