Geely withdraws from CHS, subsidies are stopped, will China's hybrid cars be in decline?

Recently, Guangzhou issued the latest revised "Guangzhou Small and Medium Passenger Car Total Control Management Measures", stipulating that no subsidies will be issued for the purchase of energy-saving vehicles and vehicle registration after July 1.

Corun announced that it plans to acquire 9.9% of the shares of Corun Hybrid Power Technology Co., Ltd. (CHS) held by Zhejiang Geely Holding Group Co., Ltd. and 27.07% of the shares of CHS held by Shanghai Maple Automobile Co., Ltd.

This means that Geely will completely withdraw from CHS.

In October 2014, Corun signed a joint venture agreement with Geely Group to jointly establish CHS. The specific contents of the CHS project include the research and development, manufacturing and sales of hybrid power and transmission system assemblies and battery packs, with a total investment of about 10 billion yuan.

In November 2015, the CHS hybrid system technology achievement passed the expert appraisal. After testing, the Geely MR7184HEV hybrid electric vehicle equipped with this system has a fuel consumption of 4.9L per 100 kilometers (NEDC conditions), and the vehicle emissions meet the National V standard. The appraisal committee believes that the overall technical achievement has reached the international leading level.

CHS represents the level of Chinese enterprises in hybrid technology to a large extent. Geely's sudden withdrawal from CHS seems to mean that Geely is giving up the hybrid technology route.

Coupled with the reduction in subsidies, many people have begun to be pessimistic about the future of hybrid vehicles in China.

However, after calming down and analyzing carefully, we can find that hybrid power still has market prospects in China.

First, the "double points" policy after the subsidy reduction is beneficial to the development of hybrid vehicles. my country's fiscal subsidy policy for new energy vehicles has not benefited hybrid vehicles. The "double points" policy after the subsidy reduction has brought obvious benefits to hybrid vehicles, which have obvious advantages in fuel saving.

From a global perspective, hybrid vehicles still have a lot of room for growth. According to relevant institutions, the global hybrid vehicle market will reach 4.169 million units in 2018, and is expected to reach 7.593 million units by 2025, with a compound annual growth rate of 8.94%.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.