In Depth: Zero-Carbon Fuels, Hybrids Offer Lifeline for Conventional Carmakers

It sounds somewhat unbelievable — the internal combustion engine (ICE) is boosting sales of new-energy vehicles (NEVs) in China, which may be a hard pill to swallow for the upstart carmakers who initially championed the displacement of fossil fuel vehicles.

In fact, in December 2024, the top three NEV-makers by sales were primarily focusing on hybrid vehicles, which incorporate a battery-powered motor and an ICE.

But while this was a surprising development for some and appears to be a nod to the strength of ICEs in the auto industry, it doesn’t alter the reality that traditional car manufacturers need to transform to survive the green transition. Rather, it shows that hybrids offer one route to this end.