The Asia-Pacific (APAC) region, spearheaded by China, Japan, and India, is emerging as the global leader in hybrid vehicle adoption. As environmental consciousness rises among consumers, hybrid vehicles are increasingly seen as a practical and affordable alternative to internal combustion engine (ICE) cars and battery electric vehicles (BEVs). According to GlobalData’s latest report, the hybrid EV powertrains market in APAC is set to grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2029.
GlobalData’s report, “Global Sector Overview & Forecast: Hybrid Electric Vehicle Powertrains – Q2 2024,” estimates that the hybrid EV powertrains market in APAC will reach 13.3 million units by 2029, up from 10.0 million units in 2024. This surge is driven by governmental initiatives to promote zero-emission vehicles and a growing consumer preference for hybrids due to their efficiency and convenience.
Madhuchhanda Palit, Automotive Analyst at GlobalData, attributes the rising popularity of hybrid vehicles to their ability to operate solely on electric power for shorter distances, especially in urban settings, while still utilizing ICEs for longer trips. This dual functionality reduces the need for significant changes in driving habits, making hybrids an attractive option for many consumers.
Major manufacturers like Toyota, Hyundai, and Volkswagen are pushing the envelope with innovations to enhance hybrid vehicle performance. Toyota, for instance, has recently patented a new hybrid vehicle control device designed to optimize engine efficiency by managing fuel cuts and adjusting rotational speed during deceleration.
Palit notes that while BEVs are encouraged by government policies, their higher costs and insufficient charging infrastructure are leading many consumers to prefer hybrids. As governments work to improve EV charging networks, the hybrid vehicle market continues to expand, driven by technological advancements and a more environmentally conscious consumer base.
The report highlights that the hybrid vehicle sector’s growth is not only a response to stringent emission regulations but also a strategic move by manufacturers to meet evolving market demands. With ongoing innovations and improvements, hybrid vehicles are set to play a crucial role in the region’s transition to greener transportation options.
