A large number of PHEVs/range-extender EVs (EREVs) were exhibited at the Shanghai Motor Show.

Imported passenger car sales in China in 2024 were down 22.2% from the previous year to approximately 646,000 units, the first year-on-year decline in two years. The slowdown in China’s economic growth is believed to have led consumers to become increasingly anxious about the economic outlook and to refrain from purchasing imported vehicles, which are relatively high-priced.
By series, European imports decreased 27.1% to 414,000 units, the first year-on-year decline in two years. Their market share shrank to 64.1%, down 4.4 points from the previous year. Sales of Japanese imports fell 9.7% to 223,000 units, but their market share expanded from 29.7% to 34.5%.
Sales of U.S. imports have continued to decline since 2020, falling 45.7% to 6,779 units in 2024, and their market share shrank to 1.0% from 1.5% in the previous year. The sales volume and market share of U.S. imports are expected to shrink even further in 2025.

However, not only BEVs but also PHEVs are on the rise in China, and companies are competing to introduce new products. EREVs, in particular, offer a relatively inexpensive additional cost and range, benefiting both OEMs and users.
European and U.S. OEMs such as VW, Renault, and Stellantis have begun to include EREVs in their product plans, and the PHEV/EREV boom is likely to spread to Europe and the United States as well.
Japanese OEMs, which have been dominant with their two-motor series-parallel systems, cannot afford to rest on their laurels.