GAC Adimotion EREV system shown at Beijing Auto Show. Credit: CarNewsChina Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member China’s hybrid electric vehicle (HEV) momentum is accelerating further in 2026, building directly on two recent developments we previously reported: Chery and Geely’s initial HEV pivot with 2 L/100 km-level claims, and Geely’s subsequent i-HEV technology launch with 48.4% thermal efficiency and sub-4 L/100 km fuel consumption targets. The latest phase marks a transition from early system announcements to mass-production deployment, led by Geely and followed by expanding hybrid strategies from Chery and Changan. Production rollout Chinese automakers, including Geely and Chery, began repositioning HEVs as a strategic alternative to Toyota’s global hybrid dominance, with fuel consumption claims approaching 2 L/100 km under specific conditions. This was followed days later by Geely’s official i-HEV system launch, which introduced a 48.4% thermal efficiency engine and reported fuel consumption below 4 L/100 km, alongside a Guinness-certified result of around 2.22 L/100 km under test conditions. In the latest update, Geely has moved beyond the announcement phase, confirming that the i-HEV system has entered mass production deployment across key models, including Emgrand, Preface, Monjaro, and Boyue L, marking a shift from technology reveal to industrial rollout. HEV systems driven by new tech Across the industry, HEV development is increasingly defined by software-controlled energy management rather than mechanical power-split systems. Geely’s i-HEV integrates AI-based control logic that continuously adjusts engine and electric motor output based on real-time driving conditions. The company describes this direction as part of a transition toward “AI-defined vehicles,” where energy flow is optimised dynamically rather than pre-set. Changan and Chery are following similar paths, adopting series-parallel architectures and higher-output electric drive systems. Chery continues to expand its hybrid battery strategy, targeting a capacity of around 5 kWh, significantly above the 1–2 kWh of traditional HEV systems. GAC has also joined the broader HEV restructuring wave through its Adimotion hybrid architecture, which integrates HEV+, plug-in hybrid, and range-extender systems into a unified platform. The system reflects a shift toward scenario-based energy management, where multiple electrified powertrains are managed within a shared software and control framework rather than developed as separate architectures. This approach positions hybrid technology within a full-spectrum electrification roadmap, aligning with the industry-wide move toward more flexible, software-defined vehicle energy systems. BYD Sales by Fuel Type. Credit: China EV DataTracker BYD data highlights internal NEV balance shift Additional market context comes from BYD’s internal new-energy-vehicle sales structure, which excludes conventional HEVs but reflects a balance between battery-electric and plug-in hybrid systems. In January 2026, BYD recorded 40.5% BEV and 59.5% PHEV sales. In February, the split shifted to 42.4% BEV and 57.6% PHEV. By March 2026, the structure reached near parity at 49.9% BEV and 50.1% PHEV. This trend highlights a stabilising internal mix between fully electric and plug-in hybrid models within China’s largest NEV manufacturer, rather than a pure BEV-led structure. Policy timing and global positioning The HEV expansion is unfolding alongside China’s 2026 policy adjustment, which reduces purchase tax exemptions for battery electric and plug-in hybrid vehicles from full exemption to a 50% reduction capped at 15,000 yuan (about 2,070 USD). This narrows the cost gap between different electrified powertrains. At the same time, Chinese automakers are increasingly positioning HEVs as part of export strategies, particularly in regions where charging infrastructure remains limited. This includes Southeast Asia and South America, where hybrid systems offer operational flexibility without dependence on charging networks. Structural transition rather than replacement China’s EV penetration surpassed 52% in March 2026, yet the expansion of HEV systems suggests that multiple powertrain technologies are evolving in parallel rather than sequentially replacing one another. Rather than reversing electrification trends, the current phase reflects a multi-pathway structure where BEV, PHEV, and HEV systems coexist across different use cases, cost segments, and global markets.