Release of Automotive Sales Potential: Since 2021, China’s automotive consumption has been continuously expanding.
Passenger Vehicle Sales: In 2024, total sales reached 22.89 million units, of which new energy vehicles (NEVs) reached 10.9 million units, a year-on-year increase of 40.7%, with a penetration rate of 47.6%.
Vehicle Type Performance:
Plug-in Hybrid Electric Vehicles (PHEV): +90% YoY
Extended Range Electric Vehicles (EREV): +83% YoY
Battery Electric Vehicles (BEV): +27% YoY (growth slowing)
Hybrid Vehicles (HV/HEV)
Use two or more energy sources to power the vehicle (gasoline, diesel, LPG, batteries, fuel cells, etc.)
Drive system may be single or multiple sets
Plug-in Hybrid Electric Vehicles (PHEV)
Can be charged via an external power source
Must meet subsidy standards: pure electric range ≥ 50 km
Extended Range Electric Vehicles (EREV)
Engine generates electricity while the electric motor drives the wheels
Pure electric driving when battery is sufficient; engine charges the battery when low
Classified under PHEV domestically and regulated similarly
Definition: Dedicated Hybrid Transmission (DHT)
Features: High integration, high efficiency, multi-mode hybrid across full speed range
Drive Modes: Series, parallel, pure electric (EV), engine direct drive
Engine, drive motor, and differential coordinate efficiently via 2–3 speed DHT transmission
Engine drives the wheels via generator or transmission
Motor can drive wheels directly, enabling high-efficiency multi-mode hybrid operation
Upstream
Raw material suppliers: gross margin 10%-15%, affected by market fluctuations
Key component suppliers (gears, bearings, differentials, housings, etc.): gross margin 20%-30%, strong bargaining power
Midstream
Automotive transmission manufacturers
Competitive landscape: “Three-legged stand” – OEMs’ own DHT, independent Chinese third-party brands, foreign DHT brands
Gross margin ~15%-20%
Downstream
Vehicle manufacturers and automotive service providers
OEMs have the highest bargaining power; maintenance services have low profit margins
PHEVs were once considered a transitional technology
Before 2020, market penetration was low, mainly driven by license incentives and fuel-saving needs
DHT technology has improved PHEV performance and economics, leading to rapid sales growth
NEVs use highly efficient motors, mostly with single-stage reduction gears
Multi-speed hybrid transmissions improve range and efficiency
Production Growth: From 2017 to 2021, production of dedicated DHT transmissions increased from 160,000 units to 810,000 units, CAGR 50%
Forecast: Production will reach 4.743 million units by 2028, a 485.6% increase over 2021
Three Major Camps:
OEM-owned DHT brands
Independent Chinese third-party brands (fastest-growing, e.g., Anhui Kuntai produces 200,000 DHT units annually)
Foreign brands (mature technology but high cost and slow response)
In 2021, PHEV retail sales reached 418,000 units, 2.1% market share, +150% YoY
PHEV share in tier-3, -4, -5 cities in 2022: 18%, 17%, 16% respectively
Expected by 2025: PHEV market share 24%, hybrid vehicle penetration 18%
DHT technology is expected to enable a tenfold market growth in the next five years
Passenger Vehicles
Widely used in mid-to-high-end models for smooth shifting and fuel efficiency
Adopted by domestic brands like Geely, Great Wall, and BYD
Enhances international competitiveness
Commercial Vehicles
Rapid growth in heavy trucks, buses, and light commercial vehicles
Improves fuel efficiency, acceleration, and ride comfort
Other Fields
Agricultural machinery (tractors, harvesters)
Marine propulsion systems
Construction machinery (excavators, bulldozers)
Stable Performance, Higher Load Capacity
Dual-gear ratio suitable for full speed range and scenarios
Great Wall’s 2-speed DHT transmission efficiency >97%
Fast Acceleration, Low Fuel Consumption
Low-speed: engine directly drives wheels, enhancing acceleration and climbing
High-speed: optimized gear ratio reduces engine speed and fuel consumption
Lower Battery Dependence
Engine involvement at low speeds reduces motor load
Reduces battery capacity and discharge power requirements while maintaining stable performance
DHT transmission is the core carrier of hybrid electrification technology
Technology evolution: from “engine-retrofitted hybrids” to dedicated multi-speed transmissions
Future development: intelligent and high-voltage innovations will continue to drive DHT market growth
Chinese companies, with rapid iteration capabilities, are poised to take a leading role in the global hybrid supply chain
