- Chinese regulators say that future plug-in hybrids must get at least 100 kilometers (62 miles) on electric power in order to qualify for any tax subsidies.
- This new regulation also includes stricter consumption rules while in hybrid combustion-engine mode.
- It goes into effect in China starting January 1, 2026.
As the world of electrified cars grows, it’s clear that China has stepped up to be a leader. But, although market penetration for electric vehicles there is the highest in the world, China still has more than a few holdouts who aren’t convinced on a full-EV future. There are plenty of reasons why, some of which may sound familiar to any American EV skeptic—like range or charging times.
Thus, Chinese brands have been altering EV-only platforms to accommodate both electric and fuel-burning cars. Geely has versions of once EV-only cars like the Lynk & Co Z10, while Xpeng has announced its intention to add gas motors to EVs like the G6, G7 and P7+ to increase their appeal and boost sales. On its face, it’s nice to see the brands meet the market where it is.
But there’s also potential for backsliding. The idea is that the world needs to switch to electrified cars to stop using gas and polluting the air—not start using gas again because we’re hard-headed or uncomfortable with electric vehicles.
The Chinese government may be on the same page. On Friday, China released new performance standards for plug-in hybrid (PHEV) models. Cars that do not meet this standard won’t be eligible for China’s reduced or eliminated tax benefit for electrified cars—or “new energy vehicles” as they’re called there.
There are new standards for fuel economy, and most notably, there’s now a minimum battery-only range floor for PHEV models: 62 miles, or 100 kilometers. This is up from 43 kilometers (27 miles) of the previous regulation. The updated standard also includes stricter rules for fuel economy when the car is in charge-sustaining mode hybrid mode when the gas engine is operating.
According to reporting from Yicai Global, the regulations are aimed at pushing more research and development in electrified cars. Manufacturers will feel the heat to upgrade their vehicles and deliver better specs.
It should also result in more all-electric and low-consumption driving, which is good for electrification efforts. Cobbling together a mediocre PHEV or extended-range EV (EREV) to get into the public’s green-plate subsidy graces isn’t really going to help anyone electrify. What’s the point of a PHEV or EREV if it can’t barely drive anywhere on electric power, and when its gas engine is on, it swills fuel?
For home-brewed Chinese companies, this won’t be an Earth-shattering change, though. A lot of popular PHEV sedans from BYD or Geely already meet the 100-km mark already. Other models are close and would likely only need minor alterations to meet the 100-km goal.
BYD Qin L DM-i plug-in hybrid
For everyone else, though, this is a double-edged sword—especially for Western brands that sell in China. If any Western brand is still selling a not-China-developed PHEV in the country, it’ll likely take work to update the cars to be compliant with the new regulation. Considering that the regulation goes into effect on January 1, with regulatory paperwork due by mid-December, that’s not a lot of time to reengineer and certify an updated model for sale in China. I wouldn’t be shocked if the remaining handful of PHEVs from Western brands sold in China are totally dropped, only furthering the exodus of Western brands packing up and leaving China.
By the same token, a rising tide lifts all ships, and if automakers are serious about increasing the economy of their PHEV models, expect that to seep out into other markets outside of China.
Just ask Volvo; its plans for a new plug-in hybrid car will likely follow what we’ve seen from Geely’s efforts on its China-oriented big PHEV SUVs like the Zeekr 9x or Lynk & Co 900. That Volvo PHEV (or EREV—we’re not quite sure) should hit the U.S. market by the end of the decade.
Contact the author: kevin.williams@insideevs.com
