China’s largest electric vehicle maker BYD plans to introduce plug-in hybrid electric vehicles (PHEVs) in Japan starting in January 2026, according to Nikkei China. The company is expected to launch the BYD Sealion 6 (known as Song Plus in China) SUV as its first PHEV model for the market, with further details set to be announced at the Japan Mobility Show in Tokyo in October 2025.
BYD Japan President Atsuki Tofukuji said that the introduction of PHEVs will help address range concerns often associated with BEVs. He described the move as an essential step in expanding BYD’s presence in Japan.
PHEVs combine rechargeable batteries with an internal combustion engine. They offer EV-like driving at lower speeds but rely on the engine for longer distances, reducing range anxiety. Unlike conventional hybrids, PHEVs can be charged externally and may serve as backup power during emergencies or outdoor use. However, their higher costs compared to traditional hybrid vehicles have limited adoption in Japan.
Competition in Japan’s PHEV market remains strong, with Toyota and Mitsubishi holding significant shares. Models such as the Toyota Harrier and Mitsubishi Outlander PHEV dominate the segment. While the Sealion 6 is considered less competitive in driving range and fuel efficiency compared with domestic rivals, BYD aims to position it at a lower price point. Japanese PHEVs typically cost more than five million yen (approx. 24,130 USD), while BYD intends to offer its model below this threshold.
Globally, PHEVs account for a larger share of BYD’s sales than BEVs. In 2024, BYD sold 4.27 million vehicles, with PHEVs making up 2.48 million units (58 per cent), compared with 1.76 million BEVs (41 per cent). The company has introduced PHEVs in Europe and Southeast Asia, including markets such as Thailand, the Philippines, and Singapore.
PHEVs represented 7.6 per cent of global new car sales in the first half of 2025, nearly equal to conventional hybrid vehicles at 7.7 per cent. In China, PHEVs hold a 15.9 per cent market share, surpassing conventional hybrid vehicles at 3 per cent. In contrast, Japan remains heavily skewed toward traditional hybrid cars, which account for nearly 30 per cent of sales, compared with just 1 per cent for PHEVs.
The International Energy Agency (IEA) projects that by 2030, PHEVs will represent about 9 per cent of Japan’s passenger vehicle market, close to EVs at 10.6 per cent. The agency also notes regional differences in environmental policies, with some markets supporting PHEV adoption through subsidies while others exclude them.
BYD has indicated that multiple PHEV models will follow the BYD Sealion 6 in Japan as it seeks to expand its PHEV lineup globally.
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