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Gas or electric? Splitting the difference could energize Chinese automakers

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Gas or electric? Splitting the difference could energize Chinese automakers

The growing popularity of plug-in hybrids (PHEVs) could impact companies and investors banking on rising demand for electric vehicle (EV) batteries. PHEV sales have outpaced pure EV sales, especially in China, where PHEVs now account for 42% of new-energy car sales. The appeal of PHEVs lies in their ability to save on fuel costs without range anxiety, as they offer the flexibility of using electricity or gasoline. Chinese automakers are also producing more affordable PHEV models with longer driving ranges, making them appealing in developing countries with inadequate charging infrastructure. However, PHEVs may cannibalize demand for pure EVs and pose potential challenges for battery manufacturers.

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