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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 equipped with new energy and power systems—such as hybrid and multi-fuel technologies—are expected to reach their industrial peak. As a result, more and more electric vehicles will gradually enter households across the country.
However, currently, domestic automakers involved in hybrid research and development have made limited progress. Although some companies appear to be competing in a "horse-to-deer" style, the lack of a unified vision and repeated efforts among them prevent collaborative R&D from forming a strong joint force. This leads to significant waste of resources and funds.
According to statistics, besides FAW Toyota directly introducing Toyota Prius models into local production, major Chinese automakers such as FAW, SAIC, Dongfeng, Changan, Chery, Geely, Maple, and BYD have all announced their own hybrid vehicle development plans and begun research. In contrast, over the past two years, multinational auto giants have moved away from isolated R&D approaches and instead focused on forming "technical alliances." For instance, in September last year, GM decided to cooperate with DaimlerChrysler and BMW to launch a multi-functional hybrid vehicle in 2007. Similarly, Volkswagen and Porsche also announced a joint effort to develop hybrid technology.
Why do these global automotive leaders prefer "technical alliances" when it comes to new energy vehicle development? Recently, Dr. Helmuth Panke, Chairman of the BMW Group, stated in an interview with Xinhua News Agency in Singapore that BMW's collaboration with PSA (Peugeot Citroën) on small-displacement engines is mutually beneficial: BMW gains large-scale production benefits, while PSA acquires advanced technology. Moreover, BMW has also partnered with GM and DaimlerChrysler to develop future hybrid technologies. However, these collaborations involve highly sophisticated technologies, which are fundamentally different from partnerships aimed merely at survival in a competitive market.
From Dr. Panke’s comments, it becomes clear that the technical alliances formed by global automotive giants are primarily driven by the combination of technical strengths and cost reduction strategies. The reshuffling of future global carmakers is not necessarily linked to traditional alliances or market competition.
So, what are the main obstacles preventing Chinese automakers from collaborating in areas like hybrid technology? According to reporters, the strong regional characteristics of the Chinese auto industry are one of the biggest challenges. Companies like FAW, SAIC, Dongfeng, Changan, and Chery are spread across different provinces and are closely tied to local government interests. Local "economic protectionism" often creates barriers that are even harder to overcome than internal company conflicts.
In addition, relevant government departments still have room for improvement in promoting "technical alliances" among domestic automakers. Authorities can use policy tools to encourage more active cooperation in the R&D of hybrid and other advanced automotive technologies.
According to authoritative sources, in 2005, domestically branded cars accounted for more than 25% of total car sales in China. While the rapid growth of self-branded vehicles reflects the effectiveness of the "market-for-technology" strategy, it is also important to recognize that relying solely on this approach risks missing out on core technological advancements and delaying the growth of independent brands. Domestic automakers must take responsibility, learn to "digest technology through innovation," and strive for leapfrog development. They should aim to develop their own core technologies in hybrid systems and ultimately achieve a true "technology-for-technology" exchange.
To reach this level of equality, Chinese automakers must become skilled at forming "technical alliances" and accumulate the necessary "individuals" to compete effectively in the future of new energy technologies.
October 02, 2025