Bad news for Toyota as China refocuses

Chinese automakers are pressing the pace in ICE technology, potentially overtaking Japan's leaders as new breakthroughs surface. Nikkei Asia highlights Chery's KunPeng Sky Optimus hybrid with a reported thermal efficiency of 48.57%, and Geely's i-HEV achieving 48.41% efficiency, both backed by AI-enhanced engineering. Changan's Blue Whale Super Engine, with 500-bar fuel-injection, aims to boost hybrid performance beyond conventional direct-injection. Geely plans an 80% rise in overseas sales in 2026 to about 750,000 units, while ICE still accounts for more than half of Geely's 2025 domestic volume. GlobalData projects EVs to account for 49% of global car sales by 2038, hybrids to remain around 15%, and plug-in hybrids at eight percent. Japan currently holds roughly 30% of global ICE vehicle sales, against China’s 20%, but the report concludes Chinese firms will reshape the global hybrid market by delivering more efficient engines and smarter vehicles. KunPeng Sky Optimus is set for future PHEVs and extended-range EVs, while Geely has showcased AI-driven engineering across its lineup. The shift marks a major realignment of ICE technology leadership as Japanese automakers have historically led the field, with Chinese makers moving rapidly to redefine the hybrid landscape.