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Experts predict that by the end of this year, hybrid sedans will be fully available in China. By the end of the 11th Five-Year Plan period, vehicles powered by new energy and hybrid systems, as well as those using multiple fuel sources, are expected to reach an industrial peak. More and more electric vehicles will gradually enter households, signaling a shift toward greener transportation.
However, currently, domestic automobile companies involved in hybrid research and development have made limited progress. Although some companies show a "horse-to-deer" posture—meaning they appear capable but lack real substance—their fragmented strategies and repeated efforts prevent them from forming a unified force. This results in significant waste of resources and funds, hindering overall progress.
According to statistics, apart from FAW Toyota directly importing Toyota Prius models into the domestic market, major Chinese automakers such as FAW, SAIC, Dongfeng, Changan, Chery, Geely, BYD, and others have all announced their own hybrid vehicle plans and begun R&D. In contrast, multinational automotive giants have abandoned isolated approaches in recent years and instead focused on forming "technical alliances." For example, in September last year, GM partnered with DaimlerChrysler and BMW to develop a multi-functional hybrid vehicle set for release in 2007. Volkswagen and Porsche also joined forces to create a hybrid model.
Why do these global automotive leaders choose "technical alliances" in new energy vehicle development? Recently, Dr. Helmuth Panke, Chairman of the BMW Group, stated in an interview with Xinhua News Agency that collaborations like the one with PSA Group allow mutual benefits: BMW gains mass production advantages, while PSA accesses advanced technology. Additionally, BMW has partnered with GM and DaimlerChrysler to develop future hybrid technologies. These partnerships focus on cutting-edge technology, not just survival in a competitive market.
From Dr. Panke’s comments, it's clear that the main goal of these technical alliances is to combine strengths and reduce costs. The reshuffling of future global automotive leaders isn't necessarily tied to alliances, but rather to technological leadership.
So what are the biggest challenges for Chinese auto companies to collaborate on technologies like hybrid power? One key obstacle is the strong regional characteristics of the Chinese auto industry. Companies like FAW, SAIC, Dongfeng, Changan, and Chery are deeply tied to local governments, making it difficult to overcome regional interests. Local priorities often create barriers that are even harder to break than internal company conflicts.
Moreover, relevant government departments still have room to promote "technical alliances" among domestic automakers. Policies can be used more effectively to encourage cooperation in hybrid and other emerging technologies.
According to authoritative data, in 2005, domestically branded cars accounted for over 25% of total car sales. While this growth reflects the success of the "market-for-technology" strategy, relying solely on this approach risks missing out on core technologies and delaying the rise of independent brands. Domestic automakers must take responsibility, learn to "digest technology through innovation," and aim for leapfrog development. They need to build their own core technologies in hybrid systems and eventually achieve "technology-for-technology."
To reach this level of equality, domestic companies must master "technical alliances" and prepare for the future competition in new energy technologies.
October 02, 2025