AS electric vehicle (EV) makers in China wage an intense price war to prop up slowing demand, Chinese brands with strong hybrid lineups are emerging as winners, attracting consumers with vehicles with long range that can cost less than gasoline cars. The emerging trend may provide a glimmer of hope for global automakers such as Toyota and Honda who are pursuing “multi-pronged” electrification strategies, as electric vehicle sales lose momentum in Europe and the United States, partly because of high auto financing costs. One third of total vehicle sales by Toyota, the world’s top-selling automaker, are already hybrids and the company reported a 34% surge in hybrid sales in the six months to end-September, outpacing 9% growth in overall revenue. Experts warn that foreign brands now face a growing threat from Chinese rivals that have conquered the domestic hybrid market and are looking overseas, emboldened by their strength as the world’s lowest-cost EV producer after heavy investment in supply chains. In the United States, most hybrid powertrains sell at a US$1,500 to US$2,000 premium to combustion models, but in China, some hybrids are offered at a slight discount to gasoline models and can be as much as 23% cheaper than pure EVs. That price advantage is driving Chinese consumers to hybrid models, which work almost like pure EVs when they are used for short daily commutes, consuming little gasoline, analysts said. “People are increasingly accepting that a car can be equipped with both an electric motor and a gasoline engine, as they are highly complementary,” said Xu Min, a professor at Shanghai Jiao Tong University’s Institute of Intelligent Vehicle. “Wherever the gasoline engine is low in efficiency, we can make up for it with the electric motor.” Two types of hybrids — plug-in hybrid (PHEV) and extended-range hybrid (EREV) — are enjoying strong demand, with their combined shipments surging 85% and outpacing a 14% growth in pure electric car sales this year, industry data showed. The popularity of these hybrids is so strong that the segment is now half as big as the pure EV market and accounts for 12% of total passenger vehicle sales, according to data from China Association of Automobile Manufacturers (CAAM). (SD-Agencies) | 