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In China, hybrid vehicles have surpassed battery-only models in popularity, as consumers move away from gas-powered cars. BYD led the market in 2024 with 4.3 million car sales, including nearly 2.5 million hybrids. While Tesla is set to sell over 600,000 battery-only vehicles, Li Auto achieved record deliveries primarily through hybrids. Leapmotor and various Chinese startups also recorded significant sales, amid increased competition from new entrants like Xiaomi. The rise in hybrid adoption coincides with government incentives for new energy vehicles, which accounted for over half of all passenger car sales by late 2024, boosting domestic car production efforts.
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