Rising battery costs and a cooling car market are likely to tilt China’s electric-vehicle race in favour of hybrids this year, as budget-conscious consumers turn away from fully electric models, analysts say.
Material cost inflation is expected to slow momentum for battery-electric vehicles (BEVs), allowing plug-in hybrids to regain market share after years of rapid electrification in the world’s largest car market.
“A loss of pure electric car sales can be expected this year due to consumers’...
Analysis & Context
Rising battery costs and a cooling car market are likely to tilt China’s electric-vehicle race in favour of hybrids this year, as budget-conscious consumers turn away from fully electric models, analysts say.
Material cost inflation is expected to slow momentum for battery-electric vehicles (BEVs), allowing plug-in hybrids to regain market share after years of rapid electrification in the world’s largest car market.
“A loss of pure electric car sales can be expected this year due to consumers’... This article provides comprehensive coverage and analysis of current events.
Rising battery costs and a cooling car market are likely to tilt China’s electric-vehicle race in favour of hybrids this year, as budget-conscious consumers turn away from fully electric models, analysts say.
Material cost inflation is expected to slow momentum for battery-electric vehicles (BEVs), allowing plug-in hybrids to regain market share after years of rapid electrification in the world’s largest car market.
“A loss of pure electric car sales can be expected this year due to consumers’...
AdvertisementChina’s private sectorTechChina’s EV momentum slows as pricier batteries steer drivers to hybridsHigher lithium prices and the end of incentives are reshaping China’s EV market, with hybrids emerging as a more practical option for manyReading Time:3 minutesWhy you can trust SCMPDaniel Renin ShanghaiPublished: 7:00pm, 19 Feb 2026Rising battery costs and a cooling car market are likely to tilt China’s electric-vehicle race in favour of hybrids this year, as budget-conscious consumers turn away from fully electric models, analysts say.Material cost inflation is expected to slow momentum for battery-electric vehicles (BEVs), allowing plug-in hybrids to regain market share after years of rapid electrification in the world’s largest car market.“A loss of pure electric car sales can be expected this year due to consumers’ cost concerns,” said Tian Maowei, a sales manager at Shanghai-based Yiyou Auto Service. “It will be a short-term hiccup for the country’s EV market because, over the past two years, we have seen more Chinese drivers opt for pure electric cars.”AdvertisementElectric vehicles encompass both BEVs and plug-in hybrid electric vehicles (PHEVs), while extended-range electric vehicles (EREVs) also fall within the hybrid category, pairing a battery with a small internal combustion engine to generate additional power.Although BEVs are widely viewed as the long-term direction of low-emissions transport, higher battery costs are widening the price gap with hybrids. Analysts estimate BEVs could be up to 20 per cent more expensive than comparable PHEVs.AdvertisementLithium price pressures alone could add as much as 3,800 yuan (US$550) to the production cost of a midsize BEV, according to a recent UBS report, compared with about 2,000 yuan for a PHEV.AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x
