Over the last few years, Battery Electric Vehicles (BEVs) have been the focal point of the electrification trend, while Plug-in Hybrids (PHEVs) and Extended Range Electric Vehicles (EREVs) have also recently gained traction. However, across the Asia-Pacific region (excluding China), Full Hybrid Electric Vehicles (FHEVs) are quietly re-emerging as the preferred electrification pathway.
In markets such as Japan and Korea, BEV adoption has slowed, as limited charging infrastructure, high upfront costs, and persistent range anxiety have caused consumers to hesitate in purchasing such models. Meanwhile, traditional automakers are struggling to compete with China’s cost-competitive BEVs and are instead looking toward hybrids as a practical alternative to meet regulatory pressures and consumer demand for improved fuel efficiency.
Indeed, FHEVs offer a middle ground, reducing emissions without requiring major changes to infrastructure or driver habits. In Q1 2025, FHEV sales in the Asia-Pacific region (excluding China) increased by 10% quarter-on-quarter (QoQ), outpacing the overall growth of Light Vehicle (LV) sales, which rose by 5%. This reinforces the shift in consumer preference toward FHEVs amid ongoing BEV challenges.
In Japan, the FHEV segment continues to grow steadily, supported by a strong and expanding line-up from domestic OEMs. Automakers are leveraging their deep expertise in hybrid technology as a transitional strategy while working to catch up with global peers in the BEV space. Unlike BEVs, which still face challenges around infrastructure and consumer acceptance, FHEVs are well established and widely embraced for their fuel efficiency, ease of use, and reliability. As such, FHEVs remain central to Japan’s electrification roadmap, with new model launches expected to sustain growth through the rest of this decade. By 2030, FHEV sales are projected to account for over 31% of Japan’s total LV sales. However, the momentum will likely shift once again within the next decade as other electrified vehicles (xEVs), particularly BEVs, gain traction. With improved infrastructure and shifting consumer preferences, FHEV volumes are anticipated to gradually decline as Japan enters the next phase of electrification.
Similarly, the automotive market in Korea is undergoing a notable shift as consumer concerns regarding range, cost, and charging infrastructure have also contributed to a slowdown in BEV growth. In response, automakers are increasingly focusing on expanding their hybrid vehicle offerings. For example, at its CEO Investor Day in May, Kia announced its plans to enhance its hybrid line-up, reflecting the company’s adaptation to evolving market demands. Likewise, Genesis is responding to the changing landscape by introducing FHEVs, starting with the GV80 model. This decision marks a significant pivot from the earlier Zero Emissions Vehicle (ZEV) target. Demand is strongest in the SUV segment, with major brands now rolling out FHEV models with this bodystyle. As is the case elsewhere, hybrids strike the best balance between fuel economy, convenience, and affordability for many Korean consumers, and by the end of the decade, FHEVs are expected to account for more than one-third of total LV sales in the country.
Meanwhile in India, the government has been strongly advocating for BEVs; however, new emissions regulations and the upcoming stricter Corporate Average Fuel Economy (CAFE) standards that are set to be introduced in 2027 are encouraging OEMs to adopt FHEVs. Currently, Toyota leads the market, but other companies such as Maruti Suzuki, Hyundai, Kia, and Renault are preparing to integrate FHEV technologies into their mass-market models. Again, with limited EV infrastructure and concerns about range anxiety, FHEVs offer a more realistic solution for reducing emissions without sacrificing affordability or practicality. Thus, FHEV sales are expected to grow rapidly and hold 16% of market share in the country by 2030.
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By GlobalDataDespite a recent wave of Chinese BEVs, ASEAN markets continue to favor FHEVs. Much of this is due to the strong influence of Japanese brands and the relative lack of charging infrastructure.
Similarly for most consumers in Southeast Asia, hybrids strike the right balance—offering fuel savings and lower emissions without the range or charging concerns tied to BEVs. As a result, FHEV sales are expected to comprise 20% of overall volumes in the ASEAN region by the end of this decade.
Looking ahead, FHEV sales in Asia-Pacific (excluding China) are forecast to grow by 16% YoY in 2025, making up more than 15% of total LV sales. This expansion trend is expected to continue for at least the next few years, and although BEVs remain central to long-term electrification goals, FHEVs are proving to be the most practical transitional solution for many markets across the region.
It is therefore clear that hybrids are becoming the “just right” choice for both automakers and consumers, offering environmental benefits today, while buying time for BEV ecosystems to catch up tomorrow.
Methin Changtor, Senior Manager, Asia Powertrain Forecast
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.
