In a new field landscape where Western automakers are struggling to keep gasoline engines alive, BYD and other Chinese automakers are leading a mini-renaissance of plug-in hybrids in Europe. Although environmental groups claim that, with an internal combustion engine and a large battery, plug-in hybrid vehicles are often more polluting than said, many see them as a greener intermediate option for those who are not ready for electric vehicles, the Financial Times notes.
For traditional automakers, it is a segment of the industry where they can still leverage their competitive advantage in traditional engines over Chinese rivals, who are far ahead in the capabilities and affordability of electric vehicles. However, the European car industry may have already lost the war before it even starts. While automakers are pressing Brussels hard to ease the region's gasoline ban from 2035, allowing the launch of plug-in hybrids (PHEVs) and other technologies, Chinese brands are already starting to win over consumers with their plug-in vehicles, which are cheaper and have a longer range.
After European tariffs of up to 45% on Chinese electric vehicle imports came into force last year, Chinese automakers turned to selling plug-in hybrids, which are not subject to similar tariffs. While Prius-style fully hybrids have been cheaper to buy and operate, as a traditional engine runs in tandem with a smaller battery that isn't plugged in, newer plug-in vehicle models from Chinese manufacturers have become more affordable due to their scale of production and control over battery supply chains.
In the first nine months of the year, sales of new plug-in hybrid vehicles in Europe and the UK increased by 32% compared to the previous year, compared with a 25% increase in electric vehicles. Sales of plug-in hybrid vehicles began to rise in Europe after the EU tightened rules on emissions regulations in 2020, but demand fell sharply just three years later as countries such as Germany and France ended subsidies for the purchase of these vehicles. Despite the latest increase in sales, environmental activists question whether plug-in hybrids are really green. According to a survey by Transport & Environment research, the actual carbon emissions of plug-in hybrids recorded in 2023 were almost five times higher than official figures. Even if plug-in hybrids were driven mainly electrically on daily short journeys, the actual emissions from plug-in hybrids remained high if a few longer-distance journeys were made on petrol. In the long term, analysts and automotive executives are divided over whether plug-in hybrid technology has a future. Many automakers have adopted plug-in hybrids to help comply with EU emissions targets.
A package of policies is expected
In Europe, much will also depend on whether plug-in hybrids will be allowed after 2035 – a decision that Brussels is expected to reveal when it announces a policy package for the automotive industry on December 10. While Germany and the car industry have been pushing hard for their membership, France and Spain remain opposed. While Chinese carmakers may switch back to electric vehicles once BYD and others start local production in Europe, their executives emphasize that PHEVs are here to stay as long as there is demand from consumers
Source: ot.gr
