Introduction

In the foreseeable future, plug-in hybrid and extended-range vehicles are poised to share the automotive market on an equal footing with battery electric vehicles (BEVs).

Recently, BYD has once again brought pride to China's automotive sector.

In November of last year, new car sales in Germany soared to 250,700 units, marking a 2.5% year-on-year increase. Among these, BEVs witnessed rapid growth, with sales reaching 55,700 units—a significant 58.5% surge from the previous year—and their market share climbed to 22.2%.

Against this backdrop, BYD's new car registrations in the German market soared to 4,026 units, representing an astonishing 834% year-on-year increase. The Seal-U DM-i (known as the "Song PLUS DM-i" in China) emerged as the top contributor, with 1,552 new registrations, making it the best-selling plug-in hybrid model in Germany.

BYD's remarkable performance instantly captured the widespread attention of European media outlets.

It's crucial to note that Germany has long been regarded as the crown jewel of the European automotive industry. Without a doubt, this Chinese new energy vehicle giant is leveraging its prowess to "conquer" this pivotal market.

Since the beginning of the year, if one were to pinpoint the most outstanding aspect of BYD's portfolio, most readers would likely highlight its overseas expansion efforts. Especially amidst persistent pressure on domestic sales, the stellar performance in this area has fueled the rapid growth of the entire enterprise.

Taking November of last year as an example again, BYD exported a total of 131,661 passenger vehicles and pickups, marking a 297% year-on-year increase. Precisely due to this strong contribution in November, its cumulative overseas shipments have reached 916,764 units, significantly surpassing the initial target of 800,000 units well ahead of schedule. Breaking through the one million unit mark is now virtually assured.

Faced with such remarkable achievements, one cannot help but exclaim, "While many competitors are still mired in the domestic market, BYD has already set sail on a broader international course. It is evolving into a new automotive giant with global production capabilities, a resilient supply chain, strong brand recognition, and a comprehensive product lineup."

More bluntly put, competition within the Chinese auto market is intensifying. To thrive in such a fiercely competitive environment, relying on and receiving feedback from overseas markets is essential. For any independent brand, the absence of a global perspective will inevitably lead to hitting a bottleneck and an upper limit, both of which are clearly visible.

In contrast, BYD has accurately and proactively identified fleeting opportunities and windows, and firmly grasped them. From product development to technological innovation, marketing strategies, and after-sales service, it has unwaveringly adhered to the strategic principle of not only going global but also penetrating deeply and ascending.

Its holistic approach undoubtedly serves as a valuable case study for all to scrutinize.

Of course, the reason behind BYD's significant strides in overseas expansion this year, aside from the earlier sowing of seeds that are now gradually taking root and sprouting, lies in a crucial "catalyst"—the large-scale globalization of its main plug-in hybrid models.

Just as illustrated at the outset, in Germany and across Europe, including Australia, South America, and other regions, the Song PLUS DM-i has emerged as a pivotal "pillar model."

According to relevant statistics, in the first 11 months of last year, its cumulative overseas shipments reached 224,036 units, soaring by 155.5% year-on-year. In simpler terms, this accounts for roughly 25% of BYD's total overseas shipments.

What does this signify? My answer points directly to, "China's Auto Exports: Plug-in Hybrids Will Present Vast Opportunities."

As for the reasons, "When examining various market segments worldwide, the acceptance of BEVs is not as high as in China. Moreover, in terms of charging infrastructure convenience, there is a significant gap compared to the Chinese experience. In such an environment, plug-in hybrid models, which ensure comprehensive usage costs while addressing range anxiety, are naturally in high demand."

Focusing further on the Song PLUS DM-i, within BYD's domestic product lineup, it has actually been gradually phased out. However, when introduced abroad, it can still achieve a significant market impact and dominate with its outstanding configuration, even at a significantly higher price point than in the domestic market, making local consumers willing to pay.

Undoubtedly, such a business model with both "volume and price" soaring is truly enticing.

According to data released by the China Passenger Car Association, in November, new energy passenger vehicle exports reached 284,000 units, marking a 243.3% year-on-year increase and a 19.3% month-on-month rise, accounting for 47.3% of total passenger vehicle exports—an increase of 26.3 percentage points year-on-year.

Further breakdown reveals that BEVs account for 57% of new energy exports, down from 74% last year. As a core focus, A00+A0 class BEV exports account for 61% of BEV exports, compared to 59% last year.

With the manifestation of scale advantages and market expansion needs of China's new energy vehicles, more and more Chinese-made new energy brand products are going global, and their overseas recognition continues to rise.

In November, plug-in hybrid models accounted for 42% of new energy exports, a significant increase from 26% last year. According to the China Passenger Car Association, "Although recently affected by some interference from external countries, the export of independent plug-in hybrids to developing countries has grown rapidly, with a bright future."

Such a judgment closely aligns with the main theme of today's article.

Looking ahead, China's auto exports have a strong possibility of being equally shared between BEVs and plug-in hybrids. Of course, the so-called "plug-in hybrids" here must necessarily include another powertrain form, "extended-range vehicles."

"I believe everyone has noticed that XPENG's overseas expansion has accelerated this year. I think among all the new energy vehicle startups, we are excelling in overseas markets. From the perspective of insurance registrations, XPENG ranks first, and from the perspective of unit prices, XPENG also leads the way."

These somewhat boastful remarks came from He Xiaopeng during an interview after the launch of the X9 extended-range version. In his view, the driving scenarios in the global market are too complex for BEVs to fully cover. The reason why XPENG chose to enter the extended-range market and plans to launch up to seven models next year is partly to meet domestic demand and partly for overseas expansion.

Similarly, during an interview after the launch of the Leapmotor Lafa5, Zhu Jiangming expressed a similar viewpoint. Next year, Leapmotor aims to reach one million units in sales. To achieve such a challenging goal, the contribution from overseas markets will undoubtedly be crucial. Compared to BEVs, extended-range models also shoulder a significant burden.

Unknown to many, there has recently been another piece of news causing a stir.

It is reported that the European Commission will lower the standard originally set to ban the sale of new gasoline and diesel vehicles starting from 2035, instead allowing the market launch of some plug-in hybrid vehicles and electric vehicles equipped with fuel-powered range extenders. The new proposal requires that by 2035, automotive tailpipe emissions in Europe should be reduced by 90% compared to the current target, which was originally set at 100% reduction.

In response, the most crucial central idea that emerges is: "The European people simply cannot do without internal combustion engines."

Such policy adjustments and concessions, on the one hand, continue to demonstrate that a too aggressive shift to BEVs would cripple the entire European automotive industry. On the other hand, they undoubtedly indirectly prove that plug-in hybrid and extended-range products from the distant East are bringing tremendous shocks to the entire European automotive industry.

The impact of this technological revolution is far more intense than imagined.

And China's auto exports find their opportunity precisely here. For automakers that have chosen to pursue both paths, as long as they are down-to-earth and hardworking, it is easy to reap the benefits.

This year, everyone has felt that plug-in hybrids and extended-range vehicles are experiencing somewhat sluggish growth domestically; unexpectedly, abroad, their golden era is just beginning.

Ahead lies a vast expanse of opportunities.

Editor-in-Chief: Cui Liwen Editor: Wang Yue

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