Core Insights - The plug-in hybrid electric vehicle (PHEV) market in China is experiencing a significant slowdown after years of rapid growth, with sales growth dropping from 90.3% to 7.8% from February to June this year [5][6] - In contrast, the sales growth of pure electric vehicles (EVs) has increased, with a 46.2% year-on-year growth in the first half of the year, driven by the rise of low-cost models [3][4] Summary by Sections PHEV Market Performance - From January to June, PHEV sales reached 2.521 million units, a year-on-year increase of 31.1% [2] - The growth rates for PHEV models from 2021 to 2024 were 140%, 151.6%, 84.7%, and 84.5% respectively [2] - Despite the increase in sales, the market share of PHEVs decreased from 18.4% to 17.1% in 2021 [4] Pure Electric Vehicle Market Performance - Pure electric vehicle sales totaled 4.415 million units in the first half of the year, reflecting a 46.2% year-on-year growth [3] - The growth rates for pure electric vehicles in the previous two years were 24.9% and 15.5% [3] Market Dynamics and Trends - The decline in PHEV growth is attributed to several factors, including the competitive pricing of pure electric vehicles with over 600 km range, improved charging infrastructure, and more favorable policies for pure electric vehicles [5][6] - Industry experts suggest that PHEVs are seen as a transitional technology, with their relevance diminishing as pure electric vehicles become more competitive [7] Export Opportunities - Despite the slowdown in domestic sales, the export of Chinese PHEVs is on the rise, with 297,000 units expected to be exported in 2024, a year-on-year increase of 190% [8] - The overall export of Chinese new energy vehicles reached 1.06 million units in the first half of the year, with PHEV exports contributing significantly to this growth [8]