In the competitive landscape of new energy vehicles, plug-in hybrid electric vehicles (PHEVs) and range-extended electric vehicles (REEVs) have emerged as two prominent technological pathways. While they may appear to be two forms of “hybrid vehicles” at first glance, the underlying technological logic and performance characteristics differ significantly. This distinction not only influences consumer choices but also drives market development, making the debate surrounding these two technologies a focal point in the new energy sector.
In simple terms, a range-extended hybrid can be likened to a “smartphone with a power bank.” Its engine is solely responsible for generating electricity, while the electric motor takes on the task of propelling the wheels. This setup sounds convenient, but it comes with a drawback: energy undergoes four transformations— from fuel to mechanical energy, then to electrical energy, and back to mechanical energy—resulting in over 20% energy loss. On the other hand, a plug-in hybrid resembles a “smartphone that can switch between primary and secondary cards.” Its engine can both generate electricity and directly drive the wheels, leading to significantly higher energy utilization, especially during high-speed driving.
This difference directly impacts the performance of the two vehicle types. Range-extended vehicles offer the advantage of flexible charging, making them suitable for areas with limited charging infrastructure. However, their energy losses limit their performance during long-distance travel. In contrast, plug-in hybrid vehicles focus on overall performance, achieving a balance suitable for both urban commuting and long-distance driving.
When discussing plug-in hybrids, one cannot overlook BYD. As a leading brand in China’s new energy vehicle sector, BYD has been deeply engaged in this field for many years. In 2024, they launched their fifth-generation DM technology, a system that not only reduces fuel consumption but also enhances performance, allowing plug-in hybrids to truly achieve the best of both worlds.
BYD’s technology excels in three major scenarios. First is daily commuting, where a pure electric range of 120 kilometers (according to the CLTC standard) meets nearly 90% of users’ daily travel needs. Assuming an annual driving distance of 20,000 kilometers, a plug-in hybrid can save approximately 12,000 yuan in fuel costs compared to traditional fuel vehicles. Second is long-distance driving. BYD’s plug-in hybrids boast a comprehensive range of up to 2,100 kilometers, with a fuel consumption of just 6.6L/100km when the battery is depleted, which is only one-third of the fuel consumption of comparable gasoline vehicles. Moreover, these vehicles are equipped with a VTOL mobile power station, providing 6 kW of external power capacity, transforming them into “power supply stations” for outdoor activities. Lastly, in terms of performance, the Han L DM model accelerates from 0 to 100 km/h in just 3.9 seconds, while its cloud-based intelligent body control system keeps the vehicle’s pitch angle within ±0.5°, challenging the traditional belief that high-speed vehicles are necessarily bumpy.
The data speaks for itself. In 2023, the sales of plug-in hybrid models in China saw an 85% year-over-year increase, capturing over 70% of the global market share. BYD led the charge with cumulative sales exceeding 3.6 million units, commanding nearly half of the market segment. By 2024, sales of BYD’s plug-in hybrids are projected to grow by 70%, reaching 2.48 million units, with the Song series leading the way at 630,000 units sold.
Furthermore, the global market landscape is quietly shifting. A report from the UK research firm GlobalData indicates that in 2024, global sales of plug-in hybrid electric vehicles will surpass traditional hybrid electric vehicles (HEVs) for the first time, with a year-over-year growth of 58%, totaling 6.78 million units. In contrast, HEV sales will only see an 18% increase, reaching 6.54 million units. This change signifies the entry of new energy vehicles into the “plug-in hybrid era.”
If one were to ask why BYD has achieved such success in the plug-in hybrid sector, the answer lies in their philosophy of “prioritizing research and development.” From 2011 to 2024, BYD has invested more in R&D than its net profits for 13 out of 14 years. In 2024, their R&D expenditure is set to reach 54.2 billion yuan, a 36% increase, significantly surpassing their net profit for the same period. Currently, BYD employs nearly 1 million people, operates 11 research institutes, and has around 110,000 engineers. With total R&D investments exceeding 180 billion yuan, they are the car manufacturer with the most R&D personnel globally, averaging 32 patent applications every working day.
This commitment to R&D has enabled BYD to continually introduce groundbreaking technologies such as the fifth-generation DM, Easy Three-Way, Tian Shen Eye advanced intelligent driving, and the Super e-Platform. “Many people laugh at us, claiming we are just burning money. But we understand that to build great vehicles and develop new energy solutions, having core technologies is essential!” Despite external skepticism about their substantial expenditures, BYD focuses on ensuring that their “technology pool” is vast and deep enough. Chairman Wang Chuanfu maintains a resolute stance: “I firmly believe that plug-in hybrids should be the first vehicle for most Chinese families. We will persist, even if we make mistakes along the way.” This dedication has transformed BYD from an early “local” automotive company into a representative of technological prowess in the global new energy vehicle industry.
Today, for every four plug-in hybrid vehicles sold globally, three are from Chinese brands. This not only marks a victory for China’s automotive industry but also serves as a successful validation of their technological choices. As Wang Chuanfu stated, “The world’s most advanced plug-in hybrid technology is in China. The global plug-in hybrid era has begun in China.” From achieving parity in fuel and electricity costs to alleviating charging anxieties and ensuring equal speeds for both fuel and electric vehicles, Chinese brands have made a remarkable comeback against joint venture brands through technology and product innovation. BYD, as a leader in this technological revolution, has set a new benchmark for the global new energy vehicle industry. Their success is not just a victory in sales and market share; it is a concentrated demonstration of China’s technological strength. BYD is proving to the world that not only can China manufacture cars, but it can also produce superior vehicles. The future of the new energy vehicle market may see ongoing competition in technological pathways, but it is certain that Chinese brands, represented by BYD, have transformed from followers into leaders, crafting their own narrative in this era.
