Core Viewpoint - The core change in the plug-in hybrid (PHEV) market is a return to rational growth, positioning PHEVs back as a "transitional technology" [1][3]. Market Performance - In the first half of this year, cumulative sales of PHEV models in China reached 2.521 million units, a year-on-year increase of 31.1% [2]. - From 2021 to 2024, the growth rates for PHEV models were 140%, 151.6%, 84.7%, and 84.5% respectively [2]. - In contrast, pure electric vehicle (EV) sales reached 4.415 million units in the same period, with a year-on-year growth of 46.2% [3]. Market Share Dynamics - In 2021, PHEV sales were 603,000 units, with a growth of 140%, while pure EV sales were 2.916 million units, growing by 161.5% [5]. - Despite the increase in PHEV sales, its market share decreased from 18.4% to 17.1% [5]. - By 2024, PHEV sales are projected to reach 5.146 million units, increasing its market share to 40%, while pure EV growth slows to 15.5% and its market share drops to 60% [5]. Recent Trends - In the first half of this year, the growth rate of PHEV sales sharply declined, dropping from 90.3% in February to 7.8% by June [6]. - Factors contributing to this decline include increased competition from pure EVs with ranges over 600 km priced between 150,000 to 200,000 yuan, improved charging infrastructure, and more favorable policies for pure EVs [6]. Future Outlook - Experts believe that while PHEVs are seen as a transitional technology, they still have significant growth potential in the next 3 to 5 years, with a market share possibly reaching 30% to 40% [9]. - Despite the slowdown in domestic growth, the overseas market presents new opportunities, with PHEV exports expected to reach 297,000 units in 2024, a year-on-year increase of 190% [10]. Global Market Opportunities - The global automotive market is undergoing an "electrification reshuffle," and Chinese PHEVs are rapidly capturing various overseas markets due to their technological and cost advantages [10]. - Countries in Europe, such as Germany, have adjusted policies to include PHEVs in "environmentally friendly vehicle" subsidies, facilitating entry into high-end markets [10].

Core Insights - The explosive growth of plug-in hybrid vehicles is reshaping the landscape of China's automotive exports, with a significant increase in the export of new energy vehicles (NEVs) [1][2] - In the first half of the year, China's total vehicle exports reached 3.083 million units, a year-on-year increase of 10.4%, while NEV exports surged to 1.06 million units, marking a 75.2% increase [1][2] - Plug-in hybrid vehicles (PHEVs) saw an impressive export growth of 210%, significantly outpacing the growth of pure electric vehicles [1][2] Industry Performance - NEVs accounted for over one-third of total vehicle exports, with passenger NEVs exporting 1.011 million units (up 71.3%) and commercial NEVs exporting 49,000 units (up 2.3 times) [2] - Traditional fuel vehicles experienced a decline, with exports totaling 2.023 million units, down 7.5% year-on-year [2] Company Dynamics - Chery remains the top exporter with 550,300 units exported, representing 17.8% of total exports, while BYD follows closely with 472,000 units, reflecting a year-on-year growth of 130% [8][10] - BYD has surpassed Tesla in several European markets and plans to increase its overseas market investments significantly [10][11] - Other companies like Geely and Great Wall are also expanding their international presence, with Geely's acquisition of Proton in Malaysia leading to a market share increase from 10% to 18% [7][11] Technological Advancements - China's dominance in plug-in hybrid technology is evident, with 68% of global patents in this area, covering critical fields such as battery management and motor control [6] - Geely's latest hybrid system, enhanced by AI technology, demonstrates significant improvements in fuel efficiency, achieving a consumption rate of 2.49L per 100 km, which is over 30% lower than traditional systems [6] Market Opportunities - The global automotive market is undergoing a shift towards electrification, with European regulations pushing for a transition away from fuel vehicles, while Southeast Asia and the Middle East present significant opportunities for Chinese PHEVs due to their cost advantages and technological leadership [7][11] - Countries like Thailand and Saudi Arabia are implementing policies to support electric vehicle adoption, creating a favorable environment for Chinese manufacturers [7]

Group 1: Export Growth and Trends - China's overall export maintained a steady growth, with a historical record of over 13 trillion yuan in the first half of the year, achieving a year-on-year increase of 7.2% [1] - In the first half of 2025, China's total automobile exports reached 3.083 million units, marking a year-on-year growth of 10.4% [1] - The export volume of Chinese automobiles has seen explosive growth since 2021, with figures of 2.01 million, 3.11 million, 4.91 million, and 5.86 million from 2021 to 2024 respectively [1] Group 2: Changes in Automotive Export Structure - The export of traditional fuel vehicles decreased, with a total of 2.023 million units exported, while new energy vehicles (NEVs) saw a significant increase, with 1.06 million units exported, reflecting a growth of 71.3% [2] - The rapid growth in passenger car exports indicates a shift in market demand from bulk purchases to individual consumer needs, enhancing the competitiveness of Chinese passenger vehicles in overseas markets [2] - The export of plug-in hybrid vehicles (PHEVs) surged, with 390,000 units exported, representing a year-on-year increase of 210% [2] Group 3: Competitive Advantages in Global Markets - Chinese automakers are leveraging their technological advancements and cost advantages in the plug-in hybrid segment to capture markets in Southeast Asia and the Middle East [3] - BYD's export volume increased by 307% year-on-year, with PHEVs accounting for 45% of its total exports [3] - In the European market, Chinese PHEVs benefit from a lower tariff rate of 10%, providing a competitive edge against local electric vehicles [4] Group 4: Leading Companies in Exports - Chery ranked first among the top ten exporters with 548,000 units exported, showing a year-on-year growth of 3.1% [5] - BYD exhibited the most significant growth with 472,000 units exported, reflecting a year-on-year increase of 130% [5] - Other notable exporters include SAIC with 438,000 units, Changan with 299,000 units, and Geely with 236,000 units, all exceeding 200,000 units in exports [5]