China’s Geely launches new hybrid system to challenge Japanese dominance

SHANGHAI, April 13 (Reuters) – Geely Auto on Monday launched its i-HEV Intelligent Hybrid system, aiming to challenge the dominance of Japanese automakers in the conventional hybrid vehicle segment by improving fuel efficiency and intelligence capabilities.

The i-HEV system integrates an AI-driven energy management platform that analyses real-time environmental conditions such as temperature, humidity and altitude to help boost energy efficiency, Geely said in a statement.

In a highway test, a Geely Emgrand model equipped with the system recorded fuel consumption of 2.22 litres per 100 kilometres, which Geely said set a new Guinness World Record.

Built on Geely’s vehicle architecture, the system offers sufficient onboard computing power to enable intelligent functions such as smart driving – a feature the company said is not yet matched by Japanese hybrid models.

The hybrid system will be rolled out this year in several Geely models including the Preface, Monjaro, Starray and Emgrand.

“Geely’s launch event today marks a key turning point for the industry,” said Yale Zhang, managing director at Automotive Foresight in Shanghai.

With more powerful motors, enhanced electric-drive capabilities, lower fuel consumption and advanced intelligence, “this amounts to a full-scale challenge to the dominance of Japanese full-hybrid vehicles in both domestic and international markets, threatening one of the most profitable segments for Japanese manufacturers,” Zhang added.

Since Toyota’s launch of the Prius in 1997, Japanese automakers have established a strong hold on the global hybrid market, particularly in regions with limited electricity supplies and less-developed power grids.

China, however, has focused on encouraging the development of plug-in hybrids, which use electric motors as primary drivers, with gasoline engines as backups or generators.

Geely’s parent, Geely Group, ranked ninth globally with 4.11 million vehicles sold in 2025, compared with 11.3 million sold by Toyota.

(Reporting by Shanghai Newsroom. Editing by Mark Potter)