Accelerating Electric Vehicle Adoption: Key Insights from the 2025 International Forum on Automotive Power Systems

The 5th International Forum on Automotive Power Systems was held on May 28, 2025, in Songjiang District, Shanghai, China. The forum focused on the transformation and opportunities of new energy vehicle (NEV) drive systems.

Fu Yuwu, Honorary Chairman of the China Society of Automotive Engineers, stated that hybrid technology is not merely a transitional solution but the best carrier for integrating electric and zero-carbon energy sources.

According to data, the global automotive market is expected to reach 90 million vehicles in 2024, representing a year-on-year increase of 1.8%, with the Chinese market accounting for over one-third of this total, exceeding 30 million vehicles.

Experts have analyzed that the rapid development of China’s hybrid vehicle market is driven by supply-side initiatives, consumer demand preferences, and supportive policies.

To achieve these goals, the industry must adhere to open cooperation and jointly promote low-carbon development throughout the entire lifecycle, facilitating the transition into a new era of comprehensive electrification in the global NEV market.

The global automotive industry is undergoing an unprecedented transformation. Within this profound industrial shift, the automotive power system, as a core technology, plays an irreplaceable role in achieving the “dual carbon” goals. Against this backdrop, the 5th International Forum on Automotive Power Systems, themed “Driven by Dual Carbon, Multi-Party Win-Win”, was grandly held on May 28, 2025.

The forum focused on the transformation and upgrading of NEV drive systems, as well as the opportunities and challenges that arise from this transformation. Experts and industry elites from government, industry, academia, and research gathered to exchange and discuss successful experiences and development trends in technological, industrial, policy, and business model innovations related to NEV drive systems, aiming to consolidate industry consensus and clarify the direction for industrial transformation and upgrading.

During his opening remarks, Fu Yuwu emphasized, “Hybrid technology is not merely a transitional solution; it is the best carrier for integrating electric and zero-carbon energy sources.” As a veteran who has witnessed the evolution of China’s automotive industry from technology acquisition to brand establishment, he stressed that, “There is no standard answer for the revolution of power systems; only solutions that best suit the market.” Today, hybrid technology is seen as that optimal solution.

Wang Ruiping, Director of the Advanced Power Systems Committee (APS) and President of the Passenger Vehicle Powertrain Professional Committee (SCP), highlighted in his keynote report titled “Leveraging Hybrid Technology Advantages to Empower Global Industry Development” that the global automotive market is projected to reach 90 million vehicles in 2024, with China’s market share exceeding one-third at over 30 million vehicles. A deeper analysis of various technical routes reveals that in January of this year, pure electric vehicles accounted for 14.5% of the global market, while hybrid vehicles (HEV, PHEV, REV) accounted for 16%, surpassing pure electric vehicles in market share.

In North America and Europe, the growth of pure electric vehicles has slowed, while hybrids, particularly HEVs, have seen significant growth. In the Chinese market, both plug-in hybrids and range-extended hybrids have also experienced substantial growth.

XU Changming, Senior Economist at the National Information Center, noted during the forum that since 2021, the market performance of hybrid vehicles in China has seen exponential growth, increasing from fewer than one million units to nearly six million. He identified three core reasons for this rapid development: first, supply-side driving forces; second, consumer demand preferences; and third, policy support.

On the supply side, traditional automakers, represented by Geely, Changan, Dongfeng, SAIC, and BYD, have made PHEV technologies and products understandable and appealing to Chinese consumers. Meanwhile, new power companies like Li Auto and Wenjie have promoted range extender technologies and expanded their offerings into high-end models.

Zhang Xiaoyu, Executive Vice President of Changan Automobile, stated that the company has been committed to developing the Blue Whale Power brand since launching the first Blue Whale 2.0T engine in 2011. The brand has continuously evolved, and at last year’s Technology Ecology Conference, it introduced the “Smart New Blue Whale 3.0 All-Domain Power Solution”, becoming the first in the industry to launch a new power brand specifically for hybrids.

On the consumer demand front, hybrids offer better economic efficiency and eliminate range anxiety. Xu Changming presented survey data indicating that users of PHEVs and range extenders save approximately half the cost per kilometer compared to traditional gasoline vehicles. With gasoline vehicles costing 0.6 to 0.7 yuan per kilometer, PHEVs and range extenders cost less than 0.3 yuan. For consumers in the hundred-thousand yuan price range, operating costs significantly influence their purchasing decisions.

Regarding policy, the National Information Center found that only PHEVs and range extenders in China enjoy the same benefits as pure electric vehicles, while in other countries, PHEVs and HEVs are subject to similar policies as gasoline vehicles. This has played a crucial role in driving the rapid development of hybrids in China, presenting new opportunities for global industry partners.

One such partner is HorsePowertrain, a global company dedicated to providing powertrain solutions for OEMs. On April 24 of this year, HorsePowertrain signed a strategic cooperation framework agreement with the government of Songjiang District, Shanghai, announcing the establishment of its Asia-Pacific regional headquarters in Songjiang. Matias Giannini, CEO of HorsePowertrain, remarked, “Last year, the growth of plug-in hybrid vehicles in China outpaced that of pure electric vehicles for the first time, achieved through collaboration and diverse solutions. HorsePowertrain will continue to use China as its core growth engine to support its future development.”

Zhao Fuquan, Lifetime Honorary President of the World Automotive Engineers Association, Professor at Tsinghua University, and Director of the Automotive Industry and Technology Strategy Research Institute, emphasized in his keynote speech titled “Reflections on the Essence of Automotive Industry Transformation and Corporate Response Strategies” that the industry must reassess the two trends of “New Automotive” and “New Globalization”. In the new market development phase, traditional local adaptive development is no longer viable; global companies must localize their R&D based on local data, scenarios, and ecosystems.

Regarding the challenges and recommendations facing the power industry, Wang Ruiping expressed his gratitude for the collaborative efforts of experts in promoting hybrid technology from initial confusion to its current recognition as a mainstream development route. However, he also highlighted the challenges in the ongoing development of the industry. Technologically, hybrid systems face dual challenges of breakthroughs and cost limitations in areas such as engines, motors, and fuels. For instance, while there is a pursuit for engine efficiency, industrialization is hampered by technical difficulties related to high-energy ignition, premium rates, and waste heat recovery. In the electric motor domain, advancements in high-efficiency electric control technologies and superconducting materials are underway. Fuel challenges include hydrogen combustion and the corrosiveness of methanol, which are key research areas. Although AI control technology has been integrated into automotive control systems, its effectiveness is still evolving.

In terms of infrastructure, there is a global shortage of charging stations. In China, there is an average of 109 public charging stations per 1,000 NEVs, compared to 59 in Europe and only 27 in the United States, with even lower numbers in underdeveloped regions. The distribution of charging stations is influenced by population density; China, with its high population density, has a higher utilization rate of charging stations, while Europe, being more sparsely populated, faces investment challenges.

The industry also faces ongoing pressure to reduce costs, with vehicle prices having decreased by 5-15% and continuing to decline. Finding ways to achieve effective cost reductions without compromising core technology quality and customer safety, and avoiding destructive price competition, has become a critical issue for the industry.

In light of the recent price wars, Fu Yuwu urged during the forum, “In the six major sectors of the infrastructure system, profits in all industries are rising, but the automotive industry continues to decline. Therefore, the price war is unending and unwinnable. We must stop and take responsibility for the industry and for the sustainable development of enterprises.”

In this complex and ever-changing international landscape, industry governance and international cooperation are crucial. Chinese enterprises are actively expanding globally and must closely collaborate with international partners while adhering to a path of globalization. Addressing the existing issues in the industry has become a key focus for industry stakeholders. In response, Wang Ruiping provided some thoughts and suggestions: First, on the policy front, the industry is actively promoting a shift in carbon emission management from “dual points” to “carbon points,” which will facilitate the development of low-carbon technological routes throughout their lifecycle. “Policies will place greater emphasis on the efficiency of engines, electric drives, and battery systems, creating a comprehensive low-carbon development incentive mechanism.”

Second, some disruptive technologies are gradually taking shape and will open up greater advancement opportunities for the industry. For instance, the applications of flux-switching motors and new semiconductor materials (such as silicon carbide, gallium nitride, and graphene) will enhance performance. New battery technologies like solid-state and fluorine-ion batteries will improve energy density and safety. In the realm of green energy, green methanol and green hydrogen are expected to achieve industrial applications, with green hydrogen prices projected to drop to 12 yuan/kg after 2030, and green methanol prices potentially reaching 3 yuan/liter, enhancing economic viability.

In the overseas market, data indicates that Chinese NEV exports are rapidly increasing, with projected exports reaching 5.86 million vehicles in 2024, including 1.58 million new energy vehicles, making up nearly 30% of the total. Furthermore, corporate strategies in overseas markets are shifting from merely “product export” to a “global ecological layout,” participating in the formulation of ESG rules and sharing industrial ecosystem resources to achieve global collaboration, with a focus on high-quality and sustainable development in international competition.

Under the concerted efforts of the industry chain, participants expressed expectations for the future market performance of hybrid technology. Wang Ruiping believes that as the NEV market expands into areas with low-density charging infrastructure, more regions will accept electrified powertrain applications, and the accumulated user experience with hybrids will further highlight their advantages. Xu Changming pointed out that in the next two to three years, hybrid-related policies will generally remain or see slight adjustments, and PHEVs can be expected to continue experiencing good growth.

Li Kaiguo, Supervisor of the China Society of Automotive Engineers, noted that according to the requirements of the Energy Saving and New Energy Vehicle Technology Roadmap, the carbon reduction target for passenger vehicles is to achieve a 60% reduction by 2040, while commercial vehicles aim for a 41% reduction. “Whether for passenger or commercial vehicles, traditional power alone cannot achieve this; a combination of internal combustion engines and electrification, namely hybrid power, is essential. Therefore, the form, proportion, and penetration of hybrid power will continue to increase.” As a key contributor to the upcoming 3.0 version of the Technology Roadmap, Li Kaiguo revealed that the roadmap is in its final drafting stage and is expected to be released in October of this year. This new version includes a focus on the high-efficiency performance zone, which is tailored for hybrid power, as only high-efficiency zones can ensure the effective performance of hybrid systems.

However, Fu Yuwu also stressed that in the marathon towards carbon neutrality, no single technology can solve all challenges. “We must embrace technological diversity and regional variations with an open mindset, progressing into the next five years, allowing hybrid technology to become an accelerator for the widespread adoption of electrification, helping the global NEV market transition into a new era of comprehensive electrification.”

Finally, following comprehensive assessments from governmental, industrial, academic, and research perspectives, Wang Ruiping projected that by 2030, China’s market electrification penetration rate is expected to reach 75%, with a global rate of approximately 60%. The global market may evolve into a pattern of 30% for pure electric, 30% for hybrid, and 40% for fuel vehicles.

In summary, from the inaugural forum on automotive power systems in 2021 to the current fifth edition, the forum has provided significant insights into the power transition of the global automotive industry over the past five years. This time, it has further clarified the critical role of hybrid technology in achieving the dual carbon goals. Currently, with support from policies, technological innovations, and market demands, hybrids have become an accelerator for the widespread adoption of electrification and will coexist with pure electric and fuel technologies in the future. Facing challenges related to technological breakthroughs, cost pressures, and globalization, the industry is poised to maintain open cooperation and collectively promote low-carbon development throughout the entire lifecycle.