What’s new: State-owned SAIC Motor Corp. Ltd. (600104.SH) will share its hybrid car technology with two of its joint venture partners, in the latest example of how the shift toward electrification has given Chinese automakers the opportunity to spearhead innovation rather than emulating foreign manufacturers.
That was the message from Lu Yong, executive vice president of SAIC’s R&D Innovation Headquarters, who said during a Friday group interview that Volkswagen AG and General Motors Co. will adopt the hybrid car technology developed by the Chinese company.
Lu’s disclosure coincided with the launch of the DMH “super hybrid” technology developed by SAIC’s passenger vehicle brand Roewe. The DMH technology, unveiled on Friday, can be used in plug-in hybrid electric vehicles (PHEVs), extended-range electric vehicles (EREVs) or hybrid electric vehicles (HEVs), Roewe said.
The background: PHEVs use batteries to power an electric motor and fossil fuels to power an internal combustion engine. While on the road, they can use fuel, battery power or a mix of the two to run. EREVs use an internal combustion engine to provide additional power for the electric motor while driving. HEVs are powered by an internal combustion engine in combination with an electric motor which only works when the car starts and runs at low speeds using energy primarily generated from braking.
Last month, Ralf Brandstaetter, CEO of Volkswagen’s China operations, said during a group interview that the German auto giant was working with SAIC and China FAW Group Co. Ltd. to build PHEVs, with future cooperation possibly involving jointly designing and producing PHEVs for the Chinese market.
In 2023, China’s new-energy vehicle sales rose 37.9% year-on-year to around 9.5 million units. That was made up of about 6.69 million pure electric vehicles, a 24.6% increase year-on-year; 2.8 million PHEVs, up 84.7%; and 6,000 fuel cell cars, up 72%, according to data from the China Association of Automobile Manufacturers.
Read more In Depth: As China Sales Slump, Global Carmakers Tap Local Ventures for EV Catch-Up
Contact reporter Ding Yi (yiding@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
