Chery and Geely to Shift to HEVs by 2026, Challenging Toyota's Dominance
Jakarta (ANTARA) - Hybrid electric vehicles (HEVs) are once again becoming a strategic focus for Chinese car manufacturers in 2026, particularly companies like Changan, Geely, and Chery, which have announced new systems and products.
The Carnewschina website, on Wednesday (8/4) local time, reported that this push comes as Toyota continues to dominate global hybrid car sales, while BYD expands its market with plug-in hybrid (PHEV) and pure electric vehicles.
Toyota’s hybrid system (THS) still uses a power-split mechanism based on planetary gears that mechanically connect the engine and wheels. This allows the engine to operate in an efficient range, with the electric motor providing assistance when needed.
This approach prioritises fuel efficiency and comfort but limits the maximum power from the electric drive due to the continuous mechanical connection.
In contrast, Chinese car manufacturers employ a different architecture. Their HEV systems generally use a series-parallel configuration with a dedicated multi-gear hybrid transmission (DHT). In this system, the electric drive is more dominant, while the engine operates efficiently or as a generator.
For example, Changan’s Blue Core HEV system uses two motors with several operating modes, including pure electric mode at low speeds, engine-assisted acceleration, and direct engine drive at high speeds.
Compared to Toyota’s system, Chinese HEVs typically feature larger electric motors, around 130–180 kW, resulting in stronger acceleration. Fuel consumption in urban conditions is claimed to reach about 2–3 litres per 100 km under certain conditions.
One of the main reasons for the shift to HEVs is the cost structure.
HEVs typically use batteries with a capacity of 1–2 kWh, much smaller than those in plug-in hybrids (10–20 kWh) or pure electric vehicles (50 kWh or more). This reduces dependence on battery material costs, which remain relatively high despite fluctuations in lithium prices.
Amid continuously falling vehicle prices in China’s highly competitive market, small batteries provide a way to maintain profit margins.
Turning point in 2027
Chinese brands position HEVs as a complement, not a replacement, for pure electric vehicles (BEVs) or plug-in hybrids (PHEVs).
Globally, Toyota’s performance shows that hybrid cars remain relevant. The company sold 11.3 million vehicles in 2025, with about 42 per cent, or roughly 4.4 million units, being hybrids.
On the other hand, BYD’s strategy indicates a different direction. The company delivered 4.6 million vehicles in 2025, nearly evenly split between plug-in hybrids and pure electric vehicles. This demonstrates an approach more focused on electrification, yet still reliant on hybrid technology.
Towards mass production
Several Chinese car manufacturers are preparing to launch HEVs. Geely has announced its i-HEV system with a target fuel consumption of around 3 litres per 100 km. Chery is experimenting with HEVs featuring larger batteries, around 5 kWh, which begins to blur the line between conventional HEVs and plug-in hybrids.
Changan is also beginning to promote trials of its latest HEV vehicles, signalling a commercial launch in the near future.