The Safety Stronghold of Japanese Cars is Being Conquered by Chinese Vehicles

Recently, the engine technology of Chinese automakers has sparked the attention of Japanese media.

A Japanese media outlet reported that in terms of engine thermal efficiency, Chinese automakers are rapidly approaching, or even surpassing Japan. For Chinese automakers, competing on engine thermal efficiency is actually nothing new.

In the past few years, automakers like GAC, Chery, Geely, and Dongfeng have showcased thermal efficiency data one after another, rising from 44% and rolling to over 46%.Engines have not been eliminated by electrification; instead, they have found new value in the hybrid era.

But what is more worth attention is perhaps the "method of use" of these engines.

Most of them were previously used in extended-range and plug-in hybrid vehicles. In the past six months, more and more automakers have started to densely push high-thermal-efficiency hybrid-specific engines to "blue-plate" gasoline-hybrid models.

Recently launched Geely Emgrand i-HEV, achieved a fuel consumption of 2.22L per 100km, breaking the Guinness World Record held by the Toyota Prius.

In this market of oil-electric hybrids, Toyota and Honda have operated for decades, and domestic brands still couldn't truly conquer it.But now, this stronghold of Japanese cars also begins to be shaken.

Fully replacing fuel vehicles, has the opportunity for gasoline-hybrid vehicles arrived?

In recent years, the Chinese auto market has completed a switch from fuel to electricity, with NEV penetration rate exceeding 50%. But the gasoline-hybrid (HEV) stuck in the middle and marked as "blue-plate" side, has not been taken seriously by domestic brands.

Now, this pattern is quietly changing. At the end of last year, a batch of domestic cars like Geely Preface, Changan Eado, UNI-V, CS55, CS75, were filed with MIIT for gasoline-hybrid versions.

At the end of March this year, Changan took the lead in releasing Blue Whale Super Power Hybrid; in April, Geely, Great Wall, and GAC successively unveiled i-HEV, Super Smart HEV, and Xingyuan Super Dual Engine.These systems mostly jumped out of the old path of Japanese "fuel-based", taking electric drive as the main focus, and through new technologies like AI calibration, some models ran "2L-level" fuel consumption in challenge tests.

New cars are also landing successively. At the end of April, Geely Preface i-HEV, Xingyue L i-HEV were launched first; at the end of May, Changan 4th Gen CS75 PLUS, 4th Gen Eado's Blue Whale Super Power version were launched and delivered; on June 16, Geely Emgrand i-HEV was also officially launched.

The sales of this batch of new cars may need to be observed for a period, but these automakers exerting effort on gasoline-hybrid models collectively, has already explained that market patterns may produce changes. And the reason for changes has a certain relationship with policy factors.

Starting from 2026, new energy vehicle purchase tax changes from full exemption to half levy, and the plug-in hybrid pure electric range threshold for subsidies rises from 43km to 100km.A batch of short-range plug-in hybrids were blocked outside the policy door, and non-plug-in, non-reliant on charging piles, yet fuel-saving gasoline-hybrids, cost-performance ratio highlighted instead.

The principles of some gasoline-hybrid models and plug-in hybrid models are actually not much different. Both are engines with electric motors, the difference lies mainly in the battery.

Plug-in hybrids carry batteries of 10+ degrees or even larger, can get green plates, can be plugged in and driven as electric cars; gasoline hybrids have only 1 to 5 degrees small batteries, rely on engines and energy recovery to charge themselves, get blue plates.

The key lies in, among people buying short-range plug-in hybrids, many actually never charge, drive them as fuel cars. This way, that big battery becomes a burden that only increases vehicle weight and cost, yet serves no use. For this part of users, gasoline hybrids with smaller batteries, lower prices, drive away after refueling, are actually more practical.

From an industry perspective, the rise of gasoline hybrids has another layer of meaning.

Price wars have fought for more than two years, automakers have almost no profit left. Data from CPCA shows, in the first quarter of 2026, the automotive industry profit margin was only 3.2%, creating a new historic low.Since the beginning of this year, MIIT and CAAM have acted multiple times to "curb excessive competition", and in June also interviewed automakers suspected of irrational competition.

Compared to piling big batteries, fighting price wars, gasoline hybrid batteries are small, no charging system needed, vehicle cost can be further reduced. In the current situation where curbing excessive competition is the main tone, this road is actually more meaningful for the healthy development of the industry.

Going overseas collectively is the bigger battlefield for gasoline hybrids

Although relying on policy adjustments, gasoline hybrids have a larger space domestically, but looking at the overall picture, the trend of electrification is irreversible. Therefore, compared to domestic, overseas is the real imagination space for gasoline hybrids.

In recent years, exports have almost become another leg of Chinese automakers. Data from CAAM shows, in January-May 2026, Chinese auto exports were 4.059 million vehicles, up 63% year-on-year; while at the same time domestic market continued to bear pressure, light 5th month single month, domestic sales slipped over 20% year-on-year. Going overseas became the most important incremental value for automakers.

And in this game of going overseas, the space for gasoline hybrids may be larger than plug-in hybrids and pure electric.

Global passenger car annual sales about 70 million, among them non-plug-in/fuel vehicles still account for a large proportion, mostly distributed in markets with imperfect charging facilities and traditional driving habits.

Gasoline hybrids don't need charging, drive away after refueling, almost a "no-threshold" overseas solution. In Europe, gasoline hybrids were originally the best selling power type, 2025 new car market share about 34.5%, exceeding pure electric and plug-in hybrid sum.

And at the policy level, gasoline hybrids might also have more advantages. Chinese pure electric has long been subject to anti-subsidy tariffs added by the EU, and according to German media reports, the EU recently also prepares to deal with Chinese plug-in hybrids.Pure electric, plug-in hybrids may be restricted at present, non-plug-in gasoline hybrids, instead became a relatively steadier road.

In fact, there are already domestic brands relying on gasoline hybrids to verify the market overseas.

For Europe, SAIC MG specially made a non-plug-in gasoline-electric hybrid product line "Hybrid+", which is gasoline hybrid products, MG3, MG HS, MG ZS all have corresponding models.

Relying on this set of gasoline hybrid models, MG ZS Hybrid+ in UK 2025 first half registration over 11,000 units, won local small SUV gasoline hybrid market sales champion, forcing Toyota Yaris Cross and Nissan Juke behind. January-May this year, SAIC sold about 150,000 vehicles in Europe, continuing to rank first among Chinese brands, among them gasoline hybrids is the fastest growing part.

Presumably, besides MG, there will be more Chinese automakers successively spreading gasoline hybrid models overseas, and entering more markets.

And this road, destined to face giants like Toyota, Honda directly. Gasoline hybrids are actually the stronghold Japanese cars have operated for decades, only in 2025, Toyota global sold about 4.4 million gasoline hybrids, accounting for 40% of its total sales, in European market closer to two-thirds of total sales.Chinese automakers entering, means moved their most steady piece of cheese.

Such direct confrontation, actually has been played out in Southeast Asia.

This area once called Japanese "backyard" market, Japanese share once exceeded 80%, Thailand closer to 90%; while as BYD, SAIC, Great Wall and other brands entered on a large scale, Japanese brands retreated step by step.

2025, Southeast Asia six countries Japanese cars sales about 2.27 million vehicles, down more than 20% year-on-year. In Thailand, Japanese share already slipped from more than 90% to around 70%, Suzuki, Subaru even directly withdrew from Thailand local production.

And this time, Chinese automakers to grab, no longer just electric vehicle incremental value, but Japanese rely on for decades gasoline hybrid basic plate.

Written at the end:

Decades ago, Toyota used a Prius, wrote "fuel-saving" standard answer for gasoline hybrids; decades later, this Japanese car's most steady brand, is now being chased by Chinese automakers from domestic to overseas.

Of course, decades of accumulated reputation, won't collapse overnight. Long-term reliability of hybrids, overseas tariffs that may be added anytime, are tests that cannot be bypassed.

But one point is already clear — that hurdle that could be bypassed through "bend" in the past, this time, Chinese automakers choose on "straight road", facing head-on across.