BYD's plug-in hybrid vehicles are accelerating towards the world.

As one of the important measures to capture the Japanese market, BYD plans to launch plug-in hybrid vehicles (PHVs) in the Japanese market for the first time around January 2026. It is expected that the "Sea Lion 6" will be introduced. The reason why BYD is vigorously developing PHVs is that it believes there is a large demand for alternatives to EVs. BYD is expanding its PHV lineup globally...

BYD, China's largest pure electric vehicle (EV) company, will accelerate the sales of plug-in hybrid vehicles (PHVs). It plans to launch PHVs in the Japanese market for the first time around January 2026. PHVs are equipped with rechargeable batteries and engines, making them more suitable for long-distance driving compared to EVs. Their global market share is already comparable to that of hybrid vehicles (HVs). Aiming at consumers who are hesitant about buying pure electric vehicles, BYD will promote PHVs as an alternative.

"This product can eliminate concerns about the driving range (a weakness of EVs)," said Atsuki Tofukuji, the president of BYD Japan, hopefully. He regards the launch of PHVs as one of the important measures to capture the Japanese market.

BYD was the first in the world to develop mass-produced PHVs in 2008, making it a pioneer in this field. It is speculated that the SUV "Sea Lion 6" will be introduced to Japan. It is planned to be unveiled at the "Japan Mobility Show" held in Tokyo at the end of October 2025.

External charging is possible

PHVs are considered to be between EVs and HVs. They are similar to EVs in terms of quietness and driving feel, but can be driven by the engine like HVs during long-distance or high-speed driving, so there is no need to worry about the battery's driving range.

The biggest difference from HVs is that they can be charged externally. They can also be used as a power source during disasters or outdoor activities, which is one of their advantages. On the other hand, they are generally more expensive than HVs and are not very popular in Japan.

Even so, BYD Japan said confidently: "With the popularity of HVs, Japan is ready for electrification." Although BYD's EV sales, which started in Japan in 2023, have faced difficulties, BYD's strategy is to actively promote PHVs as an alternative to break the situation.

Looking at the PHVs of Japanese companies that compete with BYD in the Japanese market, Toyota and Mitsubishi Motors have a high share. Compared with Toyota's "Harrier" and Mitsubishi Motors' "Outlander PHEV", BYD's Sea Lion 6 is slightly inferior in terms of driving range and fuel efficiency. However, in terms of price, BYD's dealerships said that Japanese manufacturers' PHVs cost more than 5 million yen (about 241,300 yuan), while BYD's is priced below 5 million yen, targeting high cost - effectiveness.

BYD is often seen as an EV manufacturer, but in fact, its PHV sales are higher. In 2024, BYD sold 4.27 million vehicles of all models. Among passenger cars, 2.48 million (58%) were PHVs and 1.76 million (41%) were EVs. The sales of PHVs increased about nine - fold compared to 2021.

The reason why BYD is vigorously developing PHVs is that it believes there is a large demand for alternatives to EVs. Globally, many consumers are worried about the short driving range and the lack of charging piles for EVs. For PHVs, in addition to the peace of mind of being able to run on gasoline, the charging cost is also cheaper than gasoline, which is why they are more popular than HVs.

BYD is expanding its PHV lineup globally. It was first launched in Europe in 2024 and has also been introduced to markets such as Thailand, the Philippines, and Singapore in Southeast Asia. In Japan, it also plans to launch multiple PHV models in the future.

PHV's global share is comparable to HV's

The presence of PHVs is also reflected in statistical data. According to MarkLines statistics, from January to June 2025, PHVs accounted for 7.6% of the global new - car sales. Although it is lower than EVs (14.1%), it is comparable to HVs (7.7%).

PHVs have a market share of up to 15.9% in China, the largest market, far exceeding HVs (3.0%). They are also more popular than HVs in Germany, the UK, and Brazil. This is very different from the situation in Japan, where HVs account for 29.7% and PHVs only 1.0%.

PHVs have a higher electric control ratio than HVs, so they are more compatible with the functions of new - generation vehicles such as autonomous driving. Jin Tang, a senior research fellow in the Business Solutions Department of Mizuho Bank, pointed out: "As software becomes the dominant factor in automobile manufacturing, PHVs are easier to adapt to than HVs." The trend of automobile intelligence based on artificial intelligence (AI) and other technologies may drive the shift towards PHVs.

Even if EVs become popular, there will still be a certain demand for PHVs. The International Energy Agency (IEA)'s forecast of the market share of electric vehicles (EVs and PHVs) in various countries by 2030 shows that the market share of PHVs in Japan is 9.0%, not much different from that of EVs (10.6%), and in Europe, PHVs will account for 8.3%, becoming another force driving automobile electrification.

In cold regions where batteries are prone to deterioration and in deserts where it is difficult to improve the power grid, it is also difficult to completely "eliminate the engine".

The key to the future popularity of PHVs lies in the evaluation of their environmental performance. The IEA estimated the carbon dioxide emissions of each vehicle from vehicle production to power grid construction by 2035. The results show that PHVs emit 20% more carbon dioxide than EVs and 10% less than HVs. Compared with EVs, although the environmental impact of the battery production process is controlled, they still emit carbon dioxide during driving.

Countries and regions have different judgments on how to evaluate these performances. In China, where only PHVs and EVs are eligible for new - energy vehicle subsidies, PHV sales have increased, but in Australia, PHVs are excluded from the subsidy list, resulting in a decrease in sales.

Therefore, it is important to formulate PHV development and sales strategies in combination with the policy trends of each country.

This article is from the WeChat official account "Nikkei Chinese Net" (ID: rijingzhongwenwang). The authors are Takako Fujio and Risako Kojima. It is published by 36Kr with authorization.