Plug-In Hybrid Electric Vehicles (PHEVs)

Abstract

Plug-in Hybrid Electric Vehicles (PHEVs), including Extended-Range Electric Vehicles, are recognized as a viable solution in the automotive industry’s quest for low carbonization. Their adoption plays a pivotal role in expediting energy conservation and carbon reduction efforts, driving the transformation and sustainable development of the automotive sector in the short to medium term. Recently, the market demand for PHEVs has been rapidly increasing due to their capability to satisfy diverse consumer application scenarios and requirements.

Plug-in Hybrid Electric Vehicles (PHEVs), including Extended-Range Electric Vehicles, are recognized as a viable solution in the automotive industry’s quest for low carbonization. Their adoption plays a pivotal role in expediting energy conservation and carbon reduction efforts, driving the transformation and sustainable development of the automotive sector in the short to medium term. Recently, the market demand for PHEVs has been rapidly increasing due to their capability to satisfy diverse consumer application scenarios and requirements. In this chapter, we center our research on PHEVs. We conduct a comparative analysis of the industry policies and market landscapes for PHEVs at national and regional levels. Furthermore, we delve into the operation of PHEVs and their operational characteristics in typical urban settings. Our aim is to gain insight into operation patterns of PHEVs and user preferences, contributing to the technological progress and sustainable growth of PHEVs.

8.1 Current Status of the PHEV Market

With the tightening emissions regulations, the supply of PHEVs has witnessed a rapid growth in the market.

Against the backdrop of increasingly stringent emissions regulations, OEMs are facing mounting pressure from dual credit requirements. On June 29, 2023, five ministries and commissions including the MIIT jointly issued the Decision on Amending the Measures for the Parallel Administration of the Average Fuel Consumption and New Energy Vehicle Credits of Passenger Car Enterprises, effective August 1, 2023. In terms of the credit calculation for new energy passenger car models (Table 8.1), during the period from 2024 to 2025, the credit score for standard vehicle models will be reduced by around 40% compared to the previous stage (which is generally in line with the reduction range of 32% to 52% during the period from 2021 to 2023). The credit assessment ratio for NEVs is set at 28% and 38%. Furthermore, the credit calculation formula for BEV models has been revised from 0.0056R + 0.4 in 2021 to 0.0034R + 0.2 in 2024, aiming to encourage enterprises to achieve greater breakthroughs in the energy density, consumption, and driving range of new energy power batteries. Relative to BEV models, compliant PHEV models are eligible for fixed standard vehicle scores of 1.6 and 1.0 from 2021 to 2023 and from 2024 to 2025, respectively. As the dual credit policy becomes increasingly stringent, energy conservation and emissions reduction in the automotive industry are no longer solely focused on BEV options, but rather on a combination of diverse technical routes.

Table 8.1 Credit calculation method for new energy passenger car models

To adapt to the nation’s long-term energy strategic transformation and address the pressure of dual credit requirements, major domestic OEMs are actively expanding their portfolio of NEV products. Taking into account the driving habits of conventional vehicle users, the plug-in hybrid technology roadmap has emerged as the optimal choice for a rapid transition away from traditional fuel-powered vehicles. Proprietary Chinese brands have embarked on a comprehensive hybridization process, with the new generation of plug-in hybrid products experiencing significant performance enhancements and a substantial increase in market acceptance. For instance, BYD’s DM-i hybrid system has successfully accomplished the transformation of their original fuel-powered vehicles into hybrid powertrains. Apart from BYD, leading OEMs such as Great Wall Motor, Geely, Chang’an Automobile, GAC Motor, and Chery have also introduced their latest generation of hybrid powertrain systems. These products have gained a competitive edge over international mainstream hybrid powertrain systems in terms of overall vehicle performance and fuel efficiency. As technology evolves and costs decline, hybrid offerings from proprietary brands are steadily approaching the price level of conventional fuel-powered vehicles. This trend aids in accelerating the breakthrough of proprietary brands in overcoming technological blockades imposed by foreign counterparts.

Plug-in hybrids have successfully accommodated the diverse usage needs of consumers, resulting in an explosive surge in market demand.

By considering both power performance and fuel efficiency, PHEVs are well positioned to satisfy the diverse usage needs of consumers. From a market demand perspective, as the competitiveness of plug-in hybrids continues to improve, there has been a significant increase in consumer acceptance. Over the past two years, the PHEV market has demonstrated a rapid growth trend (Fig. 8.1). In 2022, annual sales of PHEVs came at 1.518 million units, representing a year-on-year (YoY) growth of 151.6%, outpacing the YoY growth rate of 81.6% in the BEV market.

Fig. 8.1

Source China Association of Automobile Manufacturers

Sales and growth of PHEVs over the years.

Looking at the sales mix in the NEV market in the past two years (Fig. 8.2), the market share of PHEVs (PHEVs) reached 22% in 2022, expanding by 4.9 percentage points compared to the previous year. The PHEV market has been consistently heating up, emerging as a significant contributor to the growth of the NEV market.

Fig. 8.2

Source China Association of Automobile Manufacturers

Sales mix of new energy vehicles over the years—by drivetrain.

In 2022, the top 5 best-selling PHEV models in China were all from proprietary brands, specifically from the BYD brand. These models included BYD Song PLUS DM-i, BYD Qin PLUS DM-i, BYD Han DM, BYD Tang DM, and BYD Destoryer 05 (Table 8.2). They have set industry standards in terms of curb weight, price, and other aspects, garnering positive market feedback in the PHEV market. The statistical findings of potential user model comparisons conducted by Autohome Inc. (Fig. 8.3) indicate that multiple models from BYD have directly competed with conventional fuel vehicles, successfully gaining market share from their fuel-powered counterparts. The popular extended-range electric vehicle models such as Li Auto and AITO primarily compete with other NEV models, while their competition with the traditional fuel vehicle market is relatively limited.

Table 8.2 Top 5 PHEV models by sales in 2022

Fig. 8.3

Source Autohome Inc

Competitive analysis of major brands and models of PHEVs (including extended-range electric vehicles).

8.2 Promotion Status of PHEVs

Based on the data about cumulative access volume from the National Monitoring and Management Platform, this study analyzes the promotion and application of PHEVs (including extended-range electric vehicles) from multiple dimensions such as vehicle types and regional distribution. Considering the extensive promotion of PHEVs in the passenger car segment, this study undertakes a comprehensive analysis of passenger cars as the primary research focus.

8.2.1 Overall Access of PHEVs

• (1) Cumulative PHEV access characteristics

The access volume of PHEVs is rapidly increasing, and a total of over 2.298 million PHEVs have accessed the National Monitoring and Management Platform.

As of December 31, 2022, 2.298 million PHEVs had been accessed to the National Monitoring and Management Platform, including, by type, 2.255 million PHEV-passenger cars, accounting for 98.1% of PHEVs (Fig. 8.4). 1.938 million private passenger cars had been accessed, accounting for around 84.4% of PHEV-passenger cars.

Fig. 8.4

Cumulative access volume and proportion of PHEVs—by type

The provincial/municipal concentration of PHEVs is relatively high, with Guangdong province taking a significant lead.

From the perspective of the cumulative access of PHEVs across provinces/municipalities (Fig. 8.5), Guangdong, Shanghai, and Zhejiang rank in the top three with cumulative access volume of 456,000, 353,000, and 205,000, respectively. The provincial/municipal concentration of PHEVs is high, with the cumulative access volume of PHEVs in the top 3 provinces/municipalities accounting for 44.1% of the total in China.

Fig. 8.5

Cumulative access volume and proportion of PHEVs in the top 10 provinces/municipalities

In cold regions during the winter season, PHEVs have a higher share in the cumulative access volume number of locally registered NEVs.

Based on the proportion of cumulative access volume and the distribution of access structure of PHEVs among 31 provinces/municipalities (Fig. 8.6), Guangdong, Shanghai, and Zhejiang show a significant presence in the PHEV market in China. When considering the ratio between the cumulative access volume of PHEVs and the total cumulative promotion volume of locally registered NEVs, provinces/municipalities such as Heilongjiang, Ningxia Hui Autonomous Region, Xinjiang Uygur Autonomous Region, Liaoning, Jilin, Inner Mongolia Autonomous Region, and Tibet Autonomous Region demonstrate a higher suitability of PHEVs in cold temperatures due to their prolonged winter seasons in high latitude regions. In these regions, the proportion of cumulative access volume of PHEVs to the total cumulative access volume of locally registered NEVs exceeds 30%.

Fig. 8.6

Proportion of cumulative access volume of PHEVs across 31 provinces/municipalities in 2022

• (2) Cumulative access of PHEV-passenger cars

Passenger cars are the mainstream models driving the PHEV market, with PHEV-passenger cars representing over 90% of the cumulative access volume of locally registered PHEVs in the top 15 provinces/municipalities.

In terms of the concentration of promotion for PHEV-passenger cars across provinces/municipalities (Fig. 8.7), Guangdong, Shanghai, and Zhejiang occupy the first three spots in terms of the cumulative access volume. By December 31, 2022, three provinces (municipalities) had accumulated access of 454,000, 352,000, and 200,000 vehicles, representing 20.2%, 15.6%, and 8.9% respectively of the total in China. From the viewpoint of the access structure of PHEVs, passenger cars in the top 15 provinces/municipalities hold a dominant position in the PHEV market, with a market share exceeding 90%.

Fig. 8.7

The top 15 provinces/municipalities in terms of the cumulative access of PHEV-passenger cars and their respective proportions

In terms of promotion in cities, there is a strong demand for PHEV-passenger cars in Shanghai and Shenzhen.

When examining the promotion situation across different cities (Fig. 8.8), Shanghai and Shenzhen rank as the top two cities with the highest cumulative access volume of PHEV-passenger cars. Up until December 31, 2022, Shanghai had had an accumulative access of 353,000 PHEV-passenger cars, while Shenzhen had 228,000, responsible for 15.6% and 10.1% of the total in China, respectively. When it comes to the share of PHEV-passenger cars in the local NEV market, Shanghai, Shenyang, and Shenzhen have displayed a stronger demand. The proportion of PHEV-passenger cars in these cities amounts to 41.7%, 34.4%, and 32.4%, respectively.

Fig. 8.8

Proportion of cumulative access volume of PHEV-passenger cars in the TOP30 cities in 2022

Proprietary brands are speeding up the deployment of plug-in hybrids, reshaping the market landscape.

Market promotion concentration in the PHEV-passenger car sector (Fig. 8.9) reveals that as of December 31, 2022, four companies—BYD, Li Auto, SAIC Motor, and BMW Brilliance—have accumulated access in excess of 100,000 vehicles each, or over 5% of the cumulative access volume. With the proportion of cumulative access volume at 53%, the BYD DM and DM-i&p models successfully gained significant traction in the market. As Chinese car manufacturers ramp up their efforts, the introduction of BYD DM hybrid system, Geely GHS hybrid system, GAC Motor GMC hybrid system, and Chang’an Blue Whale iDD platform signifies an accelerated phase of restructuring in the plug-in hybrid system landscape.

Fig. 8.9

Cumulative access volume of PHEV-passenger car by top 10 companies

8.2.2 Access Characteristics of PHEVs over the Years

The PHEV market is experiencing rapid growth, with a year-over-year increase of nearly 150% in 2022.

Analysis of access over the years (Table 8.3) reveals that the access volume of PHEVs in 2022 stood at 1.1911 million, representing a remarkable 147.8% year-on-year increase. By examining the monthly access volume data, it becomes apparent that in 2022, the access volume of PHEVs accessed on a monthly basis consistently remained at a high level. Moreover, the fourth quarter exhibited a significant “carryover effect,” with a total of 400,000 PHEVs accessed during that period (Fig. 8.10).

Table 8.3 Cumulative access volume of PHEVs over the years

Fig. 8.10

Monthly access volume of PHEVs over the years

The market demand for PHEVs is gradually shifting towards cities not subject to purchase restriction.

From the perspective of the access characteristics over the years, the market demand for PHEVs is gradually shifting to cities not subject to purchase restriction. Figure 8.11 shows that in recent years, the market share of PHEVs in cities not subject to purchase restriction has proliferated, and the market share has significantly increased. In 2019, the market share of PHEVs in cities not subject to purchase restriction was 37.8%. By 2021, the market share of PHEVs in these cities had reached 69.3%, with an increase of 31.5 percentage points compared with 2019. The market share of PHEVs in cities not subject to purchase restriction is rapidly expanding.

Fig. 8.11

Changes in the proportion of access volume of PHEVs in cities subject to and not subject to purchase restriction over the years

The share of PHEVs in first-tier cities has decreased, and market demand is gradually releasing to lower-tier cities.

Based on the access characteristics of PHEVs in cities of different tiers over the years (Fig. 8.12), the proportion of access volume of PHEVs in first-tier cities has shown a decreasing trend yearly, while other cities of different tiers have witnessed significant increases in the access volume over the years. Due to the gradual restriction of green license plates and driving rights for PHEVs (including extended-range electric vehicles) in Beijing and Shanghai, the annual proportion of PHEV access volume in first-tier cities has gradually narrowed, declining from 47.5% in 2019 to 21.5% in 2022. In contrast, other cities of different tiers have experienced varying degrees of increase in their PHEV access share over the years. In 2022, the proportion of PHEV access in cities below the first-tier level reached 78.5%, representing a significant increase of 26 percentage points compared to 2019. On one hand, the overall cost-effectiveness of PHEVs (including extended-range electric vehicles) compared to conventional fuel vehicles is gradually becoming more apparent, leading to a significant increase in consumer purchasing desire and a rapid release of market demand. On the other hand, automotive manufacturers are adopting decentralized sales area distribution to ensure long-term stability and mitigate the impact of policy limitations.

Fig. 8.12

Changes in the proportion of access volume of PHEVs in cities of different tiers over the years

East China and South China are the main promotion regions. In 2022, the market share of PHEVs in Northeast, Central, and Northwest, and Southwest China increased.

Based on the access characteristics of PHEVs by region over the years (Fig. 8.13), East China and South China are the main promotion regions for PHEVs. The robust market demand for PHEVs in Shanghai and Guangdong resulted in a combined proportion of annual access volume at 54.2% in these two regions in 2022.

Fig. 8.13

Changes in the proportion of access volume of PHEVs in different regions over the years

From the change in PHEV access volume in recent years, the proportion of PHEVs in Northeast China, Central China, Northwest China, and Southwest has shown an upward trend, while the proportion of access volume in North China has remained relatively stable over the years.

8.2.3 Access of Extended-Range Electric Vehicles

By the end of 2022, there had been an accumulative total of 262,000 extended-range electric vehicles accessed to the National Monitoring and Management Platform.

By the end of 2022, there had been an accumulative total of 262,000 extended-range electric vehicles accessed to the National Monitoring and Management Platform. In this regard, private passenger cars represent the majority of the promoted vehicle models, with a cumulative access of 216,000 vehicles, accounting for 82.4% of the total. Official cars come next, with a cumulative access of 45,000 vehicles, responsible for 17.4% (Fig. 8.14).

Fig. 8.14

Cumulative access and proportion of extended-range electric vehicles in different application scenarios (10,000 vehicles, %)

In terms of companies with extended-range electric vehicle access, Li Auto takes the lead with a cumulative access of 181,000 vehicles, accounting for 69.4% of the total, followed by Jinkang SERES and Fujian ENOVATE, with a cumulative access of 69,000 and 5,100 vehicles, accounting for 26.6% and 1.9%, respectively.

Shanghai, Hangzhou, and Shenzhen all have a cumulative access volume of extended-range electric vehicles exceeding 5% of the total in China.

Until the end of 2022, Shanghai, Hangzhou, and Shenzhen recorded a cumulative access of 19,000, 17,000, and 15,000 extended-range electric vehicles respectively, accounting for 7.2%, 6.6%, and 5.7% of the total in China. The cumulative access of the top 3 cities represents close to 20% (Fig. 8.15). The yearly access volume tells us that in 2022, Hangzhou and Shenzhen had the first two highest annual access of extended-range electric vehicles, both exceeding 10,000 vehicles (Fig. 8.16).

Fig. 8.15

Cumulative access volume and proportion of extended-range electric vehicles in the top 10 cities

Fig. 8.16

Access volume of extended-range electric vehicles in the top 10 cities over the years

Second- and lower-tier cities witness an expanding proportion of extended-range electric vehicle access volume year by year.

Based on the proportion of access volume of extended-range electric vehicles across cities of different tiers over the years (Fig. 8.17), there has been a gradual decrease in first-tier and new first-tier cities, while second- and lower-tier cities experienced an increase from 33.3% in 2020 to 42.7% in 2022, marking a growth of 9.4 percentage points.

Fig. 8.17

Changes in the proportion of access volume of extended-range electric vehicles across cities of different tiers over the years

There has been a substantial increase in the annual proportion of access volume of extended-range electric vehicles in South China.

Based on the proportion of access volume of extended-range electric vehicles across different regions over the years (Fig. 8.18), East China has consistently held the top position, with the annual proportion exceeding 30% from 2020 to 2022. With the rapid release of demand for extended-range electric vehicles in the national market, regions outside East China show an increasing trend in the proportion of access volume. From 2020 to 2022, South China experienced a notable increase in the annual proportion of access volume of extended-range electric vehicles, rising from 14.5% to 21.7% and expanding by 7.2 percentage points. Similarly, other regions including Northeast China, Central China, and Northwest China also saw a modest growth.

Fig. 8.18

Changes in the proportion of access volume of extended-range electric vehicles across regions over the years

8.3 Operation Characteristics of PHEVs

8.3.1 Online Rate of PHEVs

The online rate of PHEVs remains at a high level, and the usage rate of PHEVs is relatively high.

From the perspective of the online rate of PHEVs in various regions (Fig. 8.19), the average online rate of PHEVs in all regions of China has shown an upward trend in the last three years. Particularly in 2022, the average online rate in all regions of the country exceeded 93%, indicating a high usage rate of PHEVs.

Fig. 8.19

Average monthly online rates of PHEVs in various regions of China

From the perspective of the online rate of PHEVs in cities of different tiers (Fig. 8.20), the online rate of PHEVs in cities of different tiers remains above 94%. There are slight differences in vehicle online rates in cities of different tiers.

Fig. 8.20

Average monthly online rates of PHEVs in cities of different tiers

From the perspective of the online rate of PHEVs by type (Fig. 8.21), the online rate of private cars, e-taxis, taxis, and cars for sharing is generally at a high level, all exceeding 90%. Among them, the average monthly online rate of PHEV-private cars is close to 100%, indicating the normalization of their usage. In the commercial vehicle sector, the online rate of PHEV-buses and PHEV-logistics vehicles in 2022 is slightly lower than that of PHEV-passenger cars, but it has shown a significant year-on-year improvement.

Fig. 8.21

Average monthly online rates of PHEVs in cities of different tiers over the years

8.3.2 Operation Characteristics of PHEVs

The proportion of mileage in electric driving mode is increasing, with a higher usage rate of the electric driving mode in private cars.

The operating modes of PHEVs are divided into electric driving mode, hybrid driving mode, and fuel-powered driving mode. In 2022, the proportion of daily mileage to the total in electric driving mode was 46.2%. From the perspective of different application scenarios, private cars have a significantly higher proportion of daily mileage in electric driving mode compared to other types of vehicles. This can be attributed to the greater convenience of charging, resulting in a higher percentage of mileage covered in electric driving mode. From the perspective of changes over the years, there has been a noticeable increase in the proportion of daily mileage in electric driving mode for private cars, taxis, and cars for sharing in 2022 (Fig. 8.22). Regardless of the vehicle type, the proportion of fuel-powered driving mode is below 10%, indicating that PHEV-passenger cars are environmentally friendly with low carbon emissions compared to vehicles in the same category.

Fig. 8.22

Proportion of average daily mileage of PHEV-passenger cars in different driving modes

From the proportion distribution of different types of vehicles with different mileages in electric driving mode (Fig. 8.23), it can be seen that the proportion distribution of private cars with different mileages in the electric driving mode is relatively uniform; taxis and cars for sharing with the mileages in the electric driving mode accounting for 40–60% of the total mileage in the electric driving mode are dominated.

Fig. 8.23

Distribution of PHEV-passenger cars with different mileages in electric driving mode in different scenarios in 2022

Extended-range electric vehicles exhibit a high proportion of mileage in electric driving mode, with those in first-tier cities having a concentrated proportion of mileage in electric driving mode above 50%.

In contrast to PHEVs, a higher proportion of extended-range electric vehicles opt for the electric driving mode. As shown in Figs. 8.24 and 8.25, in 2022, 74.8% of extended-range electric vehicles had a mileage proportion in electric driving mode exceeding 60%. As depicted in Fig. 7.26, the proportion of average monthly mileage in electric driving mode for extended-range electric vehicles in first-tier cities is predominantly concentrated above 50%. Among them, Guangzhou and Shenzhen, with lower latitudes, exhibit similar distribution patterns across each month. However, due to colder winter temperatures, extended-range electric vehicles in Beijing show a significantly lower proportion of mileage in electric driving mode compared to other cities during the period from December to February.

Fig. 8.24

Distribution of extended-range electric vehicles with different mileages in electric driving mode in 2022

Fig. 8.25

Distribution of average daily mileage for extended-range electric vehicles in electric driving mode in 2022

8.4 PHEV Charging Characteristics

In the field of passenger cars, in Chap. 4—Vehicle Charging, a detailed comparative analysis of the charging characteristics of PHEV-private cars and BEV-private cars has been made. This Chapter will compare the charging characteristics of passenger cars in different application scenarios.

8.4.1 Average Single-Time Charging Characteristics

The average single-time charging duration of PHEV-passenger cars has shown a decreasing trend year by year.

The average single-time charging duration of PHEV-passenger cars has shown a decreasing trend over the years. In 2022, the average single-time charging duration of all types of vehicles was within 3.0 h (Fig. 8.26), which was notably lower compared to the average single-time charging time in 2020. The charging duration of each type of vehicle remained stable in 2022.

Fig. 8.26

Average single-time charging duration of PHEV-passenger cars over the year—by type of vehicle

In 2022, the average single-time slow charging duration of PHEV-passenger cars was approximately 3 h, while the average single-time fast charging duration was around 1 h.

As seen from the charging methods of vehicles (Fig. 8.27), the fast charging duration of all types of vehicles generally remains around 1 h, while the slow charging duration is around 3 h. In terms of fast charging duration, cars for sharing have a slightly higher duration compared to other types of vehicles. As for slow charging, private cars, taxis, and cars for sharing have similar durations, with an average single-time slow charging time of 3.2 h.

Fig. 8.27

Average single-time charging duration of PHEV-passenger cars in different charging modes in 2022

From the perspective of the distribution of average single-time charging durations of PHEV-passenger cars (Fig. 8.28), it’s evident that the average single-time driving duration for each types of vehicle mainly concentrate in the 1–3 h range, with vehicles representing over 50% of all types of vehicles.

Fig. 8.28

Proportion of PHEV-passenger cars with different average single-time charging durations to all types of vehicles in 2022

In 2022, the average single-time initial SOC of PHEV passenger cars was 30%, and the average single-time end SOC was over 80%.

Compared to other types of vehicles, the average initial SOC of private cars is higher than that of other vehicles, at 32.4%. Whereas operational vehicles like e-taxis, taxis, and cars for sharing maintain a consistent average initial SOC of around 25% (Fig. 8.29). When it comes to the end SOC, all types of vehicles surpass 80%.

Fig. 8.29

Average single-time initial and end SOC values for PHEV-passenger cars in 2022—by type

From the distribution of initial SOC (Fig. 8.30), it can be observed that the initial SOCs of various vehicle types are predominantly concentrated between 10 and 40%, with the percentage of vehicles within this range exceeding 70%. In the segment with a low initial SOC between 0 and 10%, there are more e-taxis and cars for sharing than other types of vehicles. Meanwhile, private cars show a significantly higher percentage than other types of vehicles in the segments with the initial SOC ranges of 30–40%, 40–50%, and 50–60%, indicating a more frequent occurrence of charging as per demand.

Fig. 8.30

Distribution of PHEV-passenger cars in terms of the average single-time initial SOC in 2022—by type

As seen from the distribution of vehicles by end SOC (Fig. 8.31), private cars, taxis, and cars for sharing in the end SOC segment of 90–100% are significantly higher compared to other types of vehicles, accounting for over 45%. E-taxis exhibits a relatively even distribution across the 70–100% end SOC range.

Fig. 8.31

Distribution of PHEV-passenger cars in terms of the average single-time end SOC in 2022—by type

8.4.2 Characteristics of Average Monthly Charging

The average monthly charging frequency of PHEV-passenger cars in 2022 was significantly lower than the two previous years.

The average monthly charging frequency of PHEV-passenger cars in 2022 was 6, with a decrease compared with 2020 and 2021 (Table 8.4). The main reasons for the decrease in average monthly charging frequency for PHEV-passenger cars can be attributed to two factors. Firstly, several best-selling PHEV models, including BYD Song PLUS DM-i, BYD Qin PLUS DM-i, BYD Han DM, BYD Tang DM, and BYD Destroyer 05 high-end variant, have a driving range exceeding 100 km, resulting in an increase in mileage in electric driving mode for these vehicles. The second factor contributing to the decline is the high proportion of access volume of private cars among PHEV-passenger cars. However, in 2022, the average daily mileage of private cars was only 46.6 km, indicating a relatively low mileage. This lower mileage translates to fewer monthly charging sessions, leading to an overall lower average monthly charging frequency for PHEV-passenger cars.

Table 8.4 Average monthly charging frequency of PHEV-passenger cars

By type of vehicle (Fig. 8.32), it is evident that e-taxis has a significantly higher average monthly charging frequency compared to other types of vehicles. In 2022, e-taxis had an average monthly charging frequency of 12 times. Taxi and cars for sharing also showed a noticeable increase in their average monthly charging frequency, reaching 9.5 times and 7.1 times respectively in 2022. On the other hand, private cars had a relatively lower average monthly charging frequency, with only 4.8 times in 2022, significantly lower than in 2020 and 2021.

Fig. 8.32

Average monthly charging frequency of PHEV-passenger cars over the years—by type

PHEV-passenger cars primarily rely on slow charging, but the proportion of fast charging sessions has been increasing annually.

PHEV-passenger cars tend to have a higher frequency of charging using slow charging methods. From the perspective of charging methods (Fig. 8.33), the proportion of slow charging sessions for all types of PHEV-passenger cars is above 65%. However, private cars have a higher proportion of slow charging sessions, reaching 80.2%. When examining the changes in the proportion of charging methods over the years, there is a gradual increase in the proportion of fast charging sessions. When considering the average monthly charging frequency of various types of PHEV-passenger cars (Fig. 8.34), e-taxis stands out with a greater number of charging sessions. Specifically, they have an average of 3.9 fast charging sessions and 8.1 slow charging sessions per month. Due to the greater need for on-the-go charging, e-taxis has a slightly higher average monthly number of charging sessions compared to other vehicle types.

Fig. 8.33

Distribution of average monthly charging frequency of PHEV-passenger cars with different charging methods

Fig. 8.34

Average monthly charging frequency of PHEV-passenger cars in different charging modes in 2022

From the distribution of average monthly charging frequency (Fig. 8.35), vehicles with average monthly charging frequency of less than 5 times account for over 50% across all vehicle types. Specifically, the proportion of private cars with an average monthly charging frequency of less than 5 times is higher, reaching 69.3%; whereas the proportion of cars for sharing with an average monthly charging frequency of more than 20 times is significantly higher than other vehicle types, reaching 27.2%. This indicates that PHEV-cars for sharing have entered a stage of regular operation.

Fig. 8.35

Proportion of PHEV-passenger cars with different average monthly charging frequencies in 2022—by type

8.5 Summary

Plug-in Hybrid Electric Vehicles (PHEVs) have played a crucial role in the automotive industry by swiftly replacing conventional fuel-powered models and driving energy efficiency and carbon reduction. Drawing on the access characteristics, operation characteristics, and charging characteristics of PHEVs on the National Monitoring and Management Platform, this study summarizes the distinctive growth trends in the market demand for PHEVs in China, along with the patterns of PHEV operation and charging. Here are the key research findings:

PHEVs are well-suited to meet the varied needs of consumers, and the market is witnessing a rapid expansion phase, with proprietary brands firmly positioned at the top. Amidst the backdrop of persistently high oil prices, PHEVs exhibit significant advantages, offering a blend of benefits from conventional fuel vehicles and BEVs, thereby fueling sustained explosive growth in market demand. By December 31, 2022, the National Monitoring and Management Platform had successfully seen a cumulative access of 2.298 million PHEVs. Notably, there were 1.191 million new PHEVs added in 2022, marking a substantial year-on-year growth of 147.8%. The market for PHEVs has experienced a substantial growth in consumer demand, as more and more consumers are willing to choose PHEV models. Key Chinese OEMs are ramping up their presence in the hybrid field, with brands like BYD, Great Wall Motor, Geely, GAC Motor, Chery, and Chang’an Automobile expediting the introduction of hybrid systems. The hybrid vehicle offerings from proprietary brands are becoming more refined, spanning across different price ranges and vehicle models, thereby catering to the diverse selection needs of consumers in various market segments. Proprietary brands hold a dominant position in the PHEV market. In 2022, all of the top 5 best-selling PHEV models are from domestic proprietary brands, with foreign brands trailing behind in terms of catching up.

The consumer landscape in the market is undergoing a shift, with a rising focus on lower-tier cities, and the demand is transitioning from license-driven to encompassing economic factors. Based on the data of the characteristics of PHEV access over the years on the National Monitoring and Management Platform, the share of PHEVs in first-tier cities decreased from 37.1% in 2020 to 21.5% in 2022, witnessing a decline of 15.6 percentage points. In contrast, the proportion of annual access of PHEVs in second-tier and lower cities increased from 34.2% in 2020 to 47.4% in 2022. Furthermore, there is a gradual shift in market demand for PHEVs towards cities not subject to purchase restrictions, as the proportion of access volume in these cities rose from 37.8% in 2020 to 69.3% in 2022. Against the backdrop of persistently high fuel prices, PHEVs hold significant advantages over conventional fuel-powered vehicles in terms of both convenience and acquisition costs, gradually showcasing their comprehensive competitive edge.

The combined economic factors determine the gradual expansion of the proportion of mileage covered in electric driving mode for PHEVs. Taking into account the proportion of mileage covered in different driving modes for different types of PHEVs over the past two years, there is an increasing trend in the proportion of mileage covered in electric driving mode. In 2022, the proportion of average daily mileage covered in electric driving mode for private cars, taxis, and cars for sharing notably increased compared to the previous year (Fig. 7.22). Irrespective of the vehicle type, the percentage of fuel-powered driving mode remains below 10%, highlighting the low-carbon and environmentally-friendly attributes of PHEV-passenger cars among vehicles in the same category. Compared to PHEVs, a greater number of extended-range electric vehicles opt for electric driving mode. According to the statistical data on vehicle travel characteristics from the National Monitoring and Management Platform, in 2022, 74.8% of extended-range electric vehicles had a proportion of mileage covered in electric driving mode of over 60%.

The majority of PHEVs use slow charging methods, but the proportion of vehicles adopting fast charging methods is expanding year by year. According to the statistical data on charging methods for PHEVs from the National Monitoring and Management Platform, it is revealed that in various application scenarios, the proportion of slow charging sessions exceeds 65% for PHEV-passenger cars. Slow charging remains the primary choice for vehicle charging. Furthermore, when examining the average monthly charging sessions over the years, it is evident that there is a year-on-year increase in the proportion of fast charging sessions for PHEVs.