Global and China Range Extended Electric Vehicle (REEV) and Plug-in Hybrid Electric Vehicle (PHEV) Research Report, 2026
Research on REEVs and PHEVs: Foreign OEMs are considering extended-range technology as an important strategic option and will launch a series of new vehicles
Global PHEVs & REEVs tend to be dominated by China, featuring technological iteration, regional differentiation and accelerated overseas expansion
In 2025, 14.16 million hybrid electric vehicles (PHEVs, REEVs, and HEVs) were sold globally, accounting for 14.7% of the total vehicle sales; 7.62 million PHEVs and REEVs were sold globally, going up 17.2% year-on-year, accounting for 7.9% of the total; and 6.54 million HEVs were sold globally, rising by 11.4% year-on-year, accounting for 6.8% of the total.
As global carbon emission requirements increase, the process of replacing fuel vehicles with HEVs is accelerating. In terms of hybrid technology, PHEVs are promoted by traditional OEMs (including BYD, Great Wall Motor, Chery, Geely and Changan) due to their high functional efficiency, which have launched next-generation PHEV architectures; whereas, REEVs are favored by foreign OEMs and Internet OEMs due to their simple structure.
From 2025 to 2026, the global PHEV market shows strong growth and regional differentiation. As a key transition technology connecting battery-electric vehicles and fuel vehicles, PHEVs are playing an increasingly important role in the global automotive electrification transformation by virtue of the flexibility of "using electricity for short trips but fuel for long journeys." and continuous technological innovation. Before 2035, PHEVs are expected to remain an indispensable and important force in the global vehicle electrification transformation.
From 2025 to 2026, the global REEV market is in a critical transformation period. REEVs have achieved remarkable success in the Chinese market and are facing competitive pressure brought by the rapid advancement of battery-electric technology. The overall development trend is characterized by dominance of the Chinese market, technological evolution toward large-capacity batteries, and segmentation of the global market.
From 2025 to 2026, the global HEV (non-plug-in) market features steady growth, regional differentiation, and mature technology. The growth of HEVs mainly stems from their direct substitution for traditional fuel vehicles. In 2025, 3.733 million HEVs were registered in Europe, with a market share of 34.5%, surpassing gasoline vehicles (26.6%) for the first time. Japanese and Korean OEMs have a precipitous advantage in the global HEV sales volume. In 2025, Toyota, the first-ranked company, accounted for 52.0% of the global HEV sales volume.
In 2025, China's PHEV&REEV&HEV sales volume grew by 14.3% year-on-year, with a penetration rate of 22.7%. By 2030, the sales volume will reach 12 million units, accounting for 34% of the total passenger car sales volume. Domestic OEMs are not very willing to develop passenger cars fitted with mild hybrid/medium hybrid systems that only raise emission standards. 24V/48V MHEVs are mainly dominated by European OEMs, such as Mercedes-Benz, BMW, Audi, Volvo, etc.
In 2025, China exported 1.06 million PHEVs and REEVs, surging by 250% year-on-year, representing the strongest export growth rate for PHEVs and REEVs worldwide. In terms of engine displacement, PHEVs and REEVs with an engine displacement of 1L to 1.5L dominate China's export volume. Domestically, PHEVs and REEVs with an engine displacement of 1L to 1.5L are the most numerous and economical in China.
At the same time, the average export price of China's PHEVs & REEVs is higher than that of BEVs and HEVs. This reflects the market's recognition of the technical advantages of PHEVs/REEVs which can be powered by "both fuel and electricity" without range anxiety, and consumers are willing to pay a premium for their convenience. In the long term, as Chinese brands continue to move upmarket, avoid trade risks through localized production (such as building factories in Europe and South America), and continuously deliver smarter and more high-end products to the market, there remains solid upside potential for the average export price and brand value of Chinese PHEVs and REEVs.
PHEVs develop towards high thermal efficiency, all-in-one integration, and P1+P3 architectures
1) Mass-produced PHEV-specific engines boast a maximum thermal efficiency of 48%
With the specialized design philosophy of "delivering high performance at high altitudes", PHEV-specific engines, supported by electric motors, focus on operating within a highly efficient narrow range with a significant breakthrough in thermal efficiency. From 2026 to 2030, PHEV-specific engines will shift from "single power source optimization" to a new stage of "system matching and vehicle integration optimization". Through a high expansion ratio cycle, an ultra-high EGR rate, intelligent combustion control and other technologies, the thermal efficiency will exceed 50%.
Chinese brands have achieved global leadership in the field of thermal efficiency of dedicated hybrid engines (DHE). The maximum thermal efficiency of production models has exceeded 48%, and is moving towards 50% thanks to laboratory verification technology. Currently, the thermal efficiency of PHEV & REEV-specific engines on sale in China generally exceeds 43%, with the highest reaching 48.1%:
The 15HAJ engine developed by SAIC has a maximum indicated thermal efficiency of 48.1%;
The 1.5T Dongfeng Mach DHE has a maximum effective thermal efficiency of 48.09%;
Chery's Kunpeng Tianqing DHE achieves a thermal efficiency of 48%;
Horse Powertrain's HorseB15 DHE boasts a production-ready thermal efficiency of 47.26%, while the HorseD20 methanol engine achieves 48.15%;
BYD's PHEV-specific engine secures a thermal efficiency of up to 46.06%;
Hongqi's first 1.5L DHE breaks through 45.21% in the thermal efficiency;
Changan's Blue Whale iDD DHE has a thermal efficiency of up to 45%;
... ...
2) PHEVs are mainly concentrated in traditional OEM brands, including BYD, Geely, Chery, Changan, and Great Wall Motor.
Chinese PHEVs have achieved technological breakthroughs, with hybrid architectures converging from a diverse range of options towards a more efficient/low-cost solution (primarily based on a P1+P3 single-speed reducer architecture). The hybrid architecture of PHEVs is rapidly developing along the path of "specialization, intelligence, and high efficiency." The technical route has gradually converged from early diversified attempts to the mainstream solution that takes into account efficiency and cost represented by series and parallel connection of P1+P3, and continues to break through the performance ceiling through technological innovations such as multi-speed DHT, high-voltage platforms, and AI energy management. In the future, the hybrid architecture will be more deeply integrated with the automotive EEA and autonomous driving system, tending to provide an "efficient and senseless" driving experience in all scenarios and modes.
REEVs develop towards dedicated range extenders, large batteries and 800V ultra-fast charging
1) The battery capacity of REEVs has been increased to 60-80kWh, and the battery-electric range is 350-500km, which is close to that of mid-range EVs.
China's REEV battery capacity has grown significantly from about 15kWh to 30kWh and then to 60kWh, and large batteries have become an inevitable trend in the development of REEVs. It is expected that more 80kWh REEVs will be launched in 2026, with a battery-electric range of 350-500 kilometers.
There are already a number of REEVs with batteries of over 60kWh in 2025-2026, for example, the Leapmotor D19 REEV has a battery capacity of 80.3kWh, which supports the CLTC battery-electric range of 500 kilometers; the IM LS6 REEV has a battery capacity of 66 kWh, which enables the CLTC battery-electric range of 450 kilometers; the XPeng X9 REEV has a battery capacity of 63.3 kWh, which allows the CLTC battery-electric range of 452 kilometers. The battery capacity and battery-electric range of REEVs have nearly doubled in just a few years.
Entry-level/Mid-to-low-end (under RMB200,000): 28-40kWh battery capacity, 200-300 kilometers of battery-electric range (such as Changan Deepal/Nevo, Leapmotor C10, etc.);
Mid-to-high-end (mainstream) (RMB200,000-300,000): 42-53.4kWh battery capacity (such as Li Auto’s L series, AITO M);
High-end flagship (more than RMB300,000): 60-80kWh and above battery capacity, competitive flagship (such as Leapmotor D19, IM LS6, XPeng X9, etc.);
Compared with small batteries, large batteries have greater advantages in REEVs:
For daily commuting, REEVs can rely entirely on electricity to achieve zero fuel consumption, and their driving quietness and smoothness are very close to those of BEVs.
Large batteries combined with high-voltage fast charging significantly improve the charging experience. REEVs have a comprehensive range of over 1,300 kilometers, completely eliminating long-distance anxiety; BYD's "megawatt flash charging" and other technologies enable charging from 10% to 97% in 9 minutes, and BYD plans to build 20,000 flash charging stations by the end of 2026. The popularity of ultra-fast charging networks will compress REEVs’ advantage in recharging convenience and pose challenges to their long-term value;
Large batteries provide sufficient power buffer, allowing range extenders to always work in the most efficient range, improving the overall energy efficiency of systems.
The new NEV policy taking effect in 2026 has significantly raised the battery-electric range threshold for REEVs and PHEVs eligible for purchase tax exemptions from 43 km to 100 km. Large batteries are the first choice to meet new regulations and obtain new energy points.
REEV and PHEV batteries are developing towards larger batteries. The battery capacity of REEV batteries is higher than that of PHEV batteries, and they are all power-type batteries. However, HEVs will not blindly pursue large batteries. From 2027 to 2030, HEVs will adopt varying batteries by scenario. High-end vehicle models will pursue ultra-large batteries of 80-90kWh, focusing on luxury and versatility. The battery capacity of mainstream vehicle models will be stable in 40-60kWh, achieving the best balance of cost, weight, and range to cater to the most demanding users.
2) REEVs become a strategic solution for foreign OEMs to cope with electrification transformation
Facing the complex situation of global electrification transformation, many mainstream foreign OEMs are considering REEVs as a crucial strategic option and accelerating their layout to respond to market changes, policy adjustments and consumer demand. Compared with PHEVs, REEVs have a simple structure and high plasticity, and are more popular in the high-end market. In the international market, foreign OEMs have planned to launch their own extended-range vehicles. Foreign brands have planned extended-range electric vehicles, and intended to develop and improve extended-range systems and launch them on the market.
Li Auto, AITO and other brands have achieved great success in China with the extended-range route, which is accepted by the market. China's HEVs have exploded in overseas markets. Foreign OEMs must transform quickly in order to compete for the global new energy vehicle market share;
Globally, BEVs suffer from multiple challenges such as declining subsidies (such as in the United States), insufficient charging facilities, high battery costs, and consumers’ range anxiety and residual value panic. REEVs provide a compromise solution of "battery-electric driving experience + no range anxiety", becoming a more stable transition;
For traditional OEMs with deep accumulation in internal combustion engine technology, the range-extended system structure is relatively simple (the engine acts as a generator, without the need for a complex multi-speed gearbox), and they can use the existing supply chain and manufacturing capabilities to launch products faster and accelerate the electrification transformation;
For vehicle models such as large SUVs and pickup trucks, electrification requires huge batteries, leading to a surge in cost and weight. The extended-range solution can better balance performance, range and cost, especially in line with the North American market's demand for large-size, long-range vehicles;
The European Union proposes to relax the goal of "100% zero-emission new cars" in 2035 to "90% emission reduction" to leave room for REEVs and PHEVs using low-carbon fuels or technologies.
Global and China Range Extended Electric Vehicle (REEV) and Plug-in Hybrid Electric Vehicle (PHEV) Research Report, 2026
Research on REEVs and PHEVs: Foreign OEMs are considering extended-range technology as an important strategic option and will launch a series of new vehicles
Global PHEVs & REEVs tend to be domin...
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