BYD Unveils New Hybrid Tech Amid Escalating Gasoline Competition‍

SHANGHAI, May 28 (Reuters) - China's BYD (002594.SZ) introduced its latest iteration of plug-in hybrid technology on Tuesday, aiming to enhance both fuel efficiency and cost-effectiveness. This move heightens competition with major players like Toyota and Volkswagen, who predominantly market gasoline vehicles. At the event in Xian, Shaanxi province's capital, BYD's chairman Wang Chuanfu revealed the fifth generation of the hybrid technology, boasting a remarkable fuel consumption record of 2.9 liters per 100 kilometers (62.1 miles) on drained batteries.

Wang noted that with a fully charged battery and a full tank of gasoline, the technology enables a driving range of 2,100 kilometers, a feature emphasized in the city where the company's inaugural automotive factory was established. Additionally, BYD introduced sedan variants of its Qin L and Seal 06 models, each outfitted with the latest technology, priced from 99,800 yuan ($13,775). The company highlighted that customers adopting this technology could save up to 9,682 yuan annually in fuel expenses compared to gasoline vehicle owners.

BYD's preceding generation of plug-in hybrid technology, renowned for its battery-powered range spanning dozens of kilometers and a gasoline engine fuel consumption of 3.8 liters per 100 kilometers, has significantly contributed to its swift expansion since 2021. Key models like the Qin Plus DM-i sedan and Song Plus DM-i SUV have propelled this growth. Priced from 79,800 yuan, plug-in hybrids have dominated BYD's sales over the past three years, with the company selling a cumulative total of 3.6 million units.

In the initial quarter, the Chinese company slashed prices of its plug-in hybrids by 10% to 22%. This strategic move saw models like Qin and Song surpassing gasoline counterparts such as Lavida and Sagitar in the mass market, appealing to cost-conscious Chinese consumers with their lower prices and reduced fuel consumption. Despite its aggressive global expansion efforts, BYD still trails behind multinational automakers like Toyota, Volkswagen, General Motors, and Stellantis in terms of sales volume.

BYD, along with fellow Chinese electric vehicle (EV) manufacturers, is increasingly challenging Japanese automakers in international markets like Southeast Asia, Australia, and the Middle East. These regions, characterized by fewer trade barriers and tariffs, provide fertile ground for expansion. 

Toyota, meanwhile, unveiled next-generation engines on Tuesday, designed to accommodate alternative fuel sources like e-fuels and biofuels, aiming to curb carbon emissions and enable vehicle design modifications such as lower hoods. Unlike Toyota's pioneering hybrid technology with the Prius in 1997, Chinese-led plug-in hybrids employ larger battery packs, allowing for extended electric-only driving ranges.

Source: Reuters‍