Core Viewpoint - The EU has proposed to relax the ban on fuel vehicles, reducing the 100% zero-emission target for new cars by 2035 to a 90% reduction target, allowing plug-in hybrid vehicles and fuel-extended electric vehicles to continue sales post-2035 [2] Group 1: EU Policy Changes - The EU's decision marks a significant concession in its green policy, prompting a reevaluation of future development paths in the global automotive industry [2] - The new framework allows for the continued sale of certain plug-in hybrid and fuel-extended electric vehicles in the EU after 2035 [2] Group 2: China's Hybrid Market Dynamics - China's hybrid market is experiencing a slowdown in growth, with the penetration rate of new energy hybrid vehicles rising from 1.68% in 2018 to 23.07% in 2024, but facing challenges in 2025 [4] - The overall retail growth rate for new energy passenger vehicles is 21.9%, while the growth for fuel-extended vehicles is only 5%-6%, significantly lower than the 12.2% growth for plug-in hybrids [4] Group 3: Long-term Outlook for Hybrid Systems - Experts agree that the current slowdown in hybrid vehicle growth is a temporary adjustment rather than a long-term trend, with future growth expected to rely on technological upgrades and international expansion [7] - The long-term demand for hybrid systems in China is projected to remain strong, with a significant development window until 2040 [7][14] Group 4: Technological Breakthroughs - Key areas for technological breakthroughs in hybrid systems include NVH optimization, fuel consumption reduction, and thermal management upgrades [23][24] - The integration of AI in hybrid systems is seen as a crucial factor for enhancing efficiency and user experience [35][39] Group 5: Global Expansion and Standardization - The hybrid vehicle market is expected to expand internationally, with challenges related to local compliance, varying regulations, and brand recognition in foreign markets [40][41] - Experts emphasize the importance of establishing international standards and participating in local standard-setting processes to enhance competitiveness in global markets [47][49]

Core Viewpoint - The article discusses the recent EU proposal to relax the ban on fuel vehicles, allowing for a 90% reduction target instead of a 100% zero-emission goal by 2035, which positively impacts hybrid vehicles and extends their market viability [4][5]. Group 1: EU Policy Changes and Market Implications - The EU's decision to ease the fuel vehicle ban is a significant concession in its green policy, prompting a reevaluation of future development paths in the global automotive industry [5]. - The new framework allows plug-in hybrid vehicles and fuel-extended electric vehicles to continue sales post-2035, marking a shift in the perception of these technologies [4][5]. Group 2: China's Hybrid Market Dynamics - China's hybrid vehicle market is experiencing a slowdown in growth after a rapid increase from 1.68% to 23.07% in production share from 2018 to 2024, indicating a market bottleneck [7]. - In contrast to the EU's long-term demand for hybrid systems, China's market is facing short-term growth challenges, with hybrid vehicle growth rates lagging behind pure electric vehicles [7][10]. Group 3: Long-term Outlook for Hybrid Technology - Experts agree that the current slowdown in hybrid vehicle growth is a temporary adjustment rather than a long-term decline, with a projected continued demand for hybrid systems in the coming years [10][11]. - By 2040, traditional fuel vehicles are expected to be fully hybridized, indicating a sustained development window for hybrid technology in China [10][18]. Group 4: Technological Advancements and User Experience - Key technological breakthroughs are necessary for the long-term success of hybrid systems, focusing on user experience, cost reduction, and performance optimization [13][28]. - The integration of AI in hybrid systems can enhance efficiency, optimize energy management, and improve user experience by adapting to driving habits [40][46]. Group 5: Global Expansion and Standardization Challenges - The article highlights the importance of localizing hybrid vehicle offerings for international markets, addressing varying regulatory standards and consumer preferences [51][53]. - Establishing international standards and collaborating across the supply chain are critical for the successful global expansion of China's hybrid technology [55][56].