EV manufacturer BYD thrives in the Chinese electric vehicle market due to the popularity of Plug-in Hybrid Vehicles (PHEVs) it offers.
In the ever-evolving world of electric vehicles (EVs), China continues to lead the charge. However, a recent shift has emerged in the plug-in hybrid electric vehicle (PHEV) market, with sales experiencing a historic decline amidst a larger boom in fully electric vehicles (BEVs).
According to the latest data, Chery took the seventh position in China's top 10 EV manufacturers, with a significant 158% year-on-year increase in deliveries. Despite this growth, Chery's market share improved by just 1.3 percentage points (pp) to 3%, reflecting the broader trend of PHEVs losing market share within the new energy vehicle (NEV) segment.
The decline in PHEV sales is a stark contrast to the overall growth in China's EV market. Total EV sales have increased by 29% year-on-year (YoY) so far in 2025. However, PHEVs have shown a contrasting pattern, with retail sales falling by about 4.04% YoY in July 2025, and a significant 15.56% month-on-month decrease.
The shift towards BEVs is not exclusive to China. Globally, consumers are increasingly favoring fully electric vehicles over hybrid models. This trend is likely driven by advancements in battery technology, which have resulted in longer range and faster charging times for BEVs, making them a more attractive option for many consumers.
Among the top Chinese EV manufacturers, BYD continues to dominate the market, delivering 3.17 million units in the first 11 months of 2024, a 29.9% improvement YoY. However, BYD's market share dropped to 32.1%, a 2.3pp decrease compared to the same period a year before. Despite this, BYD has been instrumental in popularizing PHEVs in China, offering competitive models that helped grow the segment prior to this recent slowdown.
As the market pivots strongly towards full electrification, manufacturers like BYD are emphasizing BEVs while likely continuing to support PHEV offerings during this transitional phase. Other notable players in China's EV market include Aito, Xpeng, Tesla, Changan, Leapmotor, Li Auto, Geely, and Aion, each showing varying degrees of growth and market share changes.
In summary, the current state of the PHEV market in China is a historic decline amidst a larger boom in fully electric vehicles, reflecting shifting consumer preferences and policy incentives pushing towards zero-emission, battery-electric technologies. As the industry evolves, manufacturers will need to adapt to these changes, focusing on developing competitive BEV models to meet the growing demand from consumers.
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- The renewable-energy sector, especially the electric-vehicles industry, is undergoing a significant transformation, with China leading the charge and the world following suit.
- In the realm of finance, investment in clean technology, such as electric vehicles, is gaining traction as consumers show a preference for battery-electric vehicles (BEVs) due to advancements in battery technology.
- As lifestyles become more environmentally conscious, the demand for electric vehicles, particularly fully electric vehicles, is on the rise, causing a historic decline in sales for plug-in hybrid electric vehicles (PHEVs).
- The technology evolution in the automotive industry, spurred by breakthroughs in battery technology, is reshaping consumer choices, favoring electric-vehicles (EVs) over conventional cars and contributing to the decline of PHEVs in the market.
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