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

SHANGHAI, (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