As the new energy transition enters deeper waters, multinational automakers are reassessing the value of the hybrid vehicle segment. On the evening of August 27, Volvo launched pre-sales for its new hybrid SUV XC70, with pricing set at 299,900 yuan and 329,900 yuan respectively. The XC70 represents the first model built on Volvo's new SMA super hybrid architecture, which focuses specifically on advanced hybrid vehicles.
Volvo is pursuing a dual-track market strategy. Data indicates that new energy vehicles accounted for 46% of Volvo's global sales last year, with plug-in hybrid electric vehicles achieving global sales of 177,600 units, representing a 16% year-over-year increase. According to Volvo's roadmap, over 90% of its global sales will consist of pure electric and plug-in hybrid vehicles by 2030.
"From global markets to China, we will steadfastly advance our electrification development strategy. With the launch of the SMA super hybrid architecture, Volvo's product strategy in China's new energy market has been upgraded to a parallel dual-architecture approach combining SPA2 and SMA, further expanding Volvo's coverage in the new energy vehicle market and accelerating electrification transformation in China and globally," stated Yuan Xiaolin, President and CEO of Volvo Cars Asia Pacific.
Notably, strategic positioning in the hybrid market has become a consensus among multinational automakers.
In May this year, Honda announced its 2025 global business plan, indicating adjustments to product investment plans and strengthening hybrid power product strategy. The company plans to launch 13 new-generation hybrid models globally between 2027-2030, targeting hybrid vehicle sales of 2.2 million units by 2030.
Similarly, Ford Motor made significant adjustments to its electrification strategy last year, deciding to offer hybrid versions for all gasoline models by 2030 while delaying the launch of some electric vehicle models.
Beyond strategic shifts, multinational automakers are accelerating product deployment in the hybrid market. At this year's Shanghai Auto Show, SAIC Volkswagen unveiled its first full-size range-extended SUV concept vehicle, the ID.ERA. Stephan Wöllenstein, Global CEO of Volkswagen Brand, commented: "In recent years, plug-in hybrid development momentum has been very evident, achieving significant progress across multiple markets. While range-extended technology development hasn't been as rapid as plug-in hybrids, it has entered the right track, particularly in the Chinese market where acceptance is higher than in other countries and regions. These factors drive our technology investment and product positioning across different powertrain systems."
From Yuan Xiaolin's perspective, powertrain technology remains an ongoing industry discussion. "Gasoline, plug-in hybrid, and pure electric power systems will coexist for an extended period because they can adapt to different scenarios," Yuan explained. The pure electric vision must be balanced with market realities, and three years ago Volvo decided to modernize its products with platform-based solutions. Regardless of external changes, the current solutions will represent the most market-needed product format during this platform's lifecycle.
The hybrid market "heating up" reflects automakers' reconsideration of market trends.
Data shows that new energy vehicle sales reached 8.22 million units in the first seven months of this year, up 38.5% year-over-year. Among these, plug-in hybrid models accounted for 2.972 million units, increasing 25.9% year-over-year. Additionally, plug-in hybrid exports reached 475,000 units in the first seven months, growing 2.1 times year-over-year. Ouyang Minggao, academician of the Chinese Academy of Sciences and Vice Chairman of China EV100, predicts that plug-in hybrid market share could rise from 30% to approximately 40% this year, with range-extended vehicles maintaining around 10%.
Rising market demand has allowed early-positioned companies to reap benefits. Data indicates that BYD achieved sales of approximately 2.49 million units in the first seven months of this year, with plug-in hybrid models contributing about 1.25 million units, representing half of total sales.
As the market continues expanding, companies positioned in the hybrid segment are seeing improved sales volumes and profitability. In 2023, Li Auto became the first profitable new energy vehicle manufacturer through its range-extended models; last year, Seres also achieved profitability primarily through its AITO brand focusing on range-extended vehicles. Previously, Ford CEO Jim Farley stated that hybrid vehicles are now more profitable than non-hybrid vehicles.
"The pure electric market currently faces intense competition, with automakers racing to develop technology, range, and charging capabilities, but also confronting profitability challenges. Therefore, hybrid models that solve range anxiety and offer strong profitability are receiving high attention from automakers," explained Yan Jinghui, expert committee member of the China Automobile Dealers Association. Both domestic and international companies are rushing into the hybrid market because they see development prospects, but regardless of powertrain technology, companies must focus on product competitiveness and R&D capabilities, delivering innovative vehicles that meet market demands to gain consumer and market recognition.