In the March 2026 issue of the Alternative Power Report produced by Power Systems Research and authored by Guy Youngs, you’ll find articles on plug-in hybrid research, long-run tests of PV-powered refrigerated trailers, comparison tests of EV batteries, cutbacks in Bosch China operations, and the changing cost differential between Chinese and EU batteries. Read these articles and more in the March Alternative Power Report today. PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

Study shows PHEVs exceed government estimates. There have been several studies that suggest that hybrid electric vehicles (also called PHEVs) are simply not the great environment saver that the marketing people are suggesting. A new study by the Fraunhofer Institute shows that on average, PHEVs use more than three times as much fuel as government estimates suggest.

The study is highly credible as it was based around on-board fuel consumption monitoring data from a massive 981,035 vehicles across Europe.

A gap of over 300% is severe and makes it hard for the EU to regulate something when the estimated numbers are so wildly different from reality. The EU is aware of this problem, and is taking some measures to fix it

Source: Electrek: Read The Article

PSR Analysis: For some time now, people have been arguing that PHEVs are not the planet saver that the marketing people are suggesting it is. This is just more data to confirm this.  PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

The vehicle is expected to be produced locally and positioned in the compact SUV segment, supporting Volkswagen’s regional electrification roadmap. The launch reinforces the company’s focus on hybridization technologies adapted to Brazilian market conditions and regulatory trends.

Source: Automotive Business     Read The Article

PSR Analysis. The Tukan signals Volkswagen’s strategic alignment with Brazil’s ethanol ecosystem by prioritizing flex hybrid solutions over full BEV adoption in the near term. This pathway offers lower infrastructure risk and faster market scalability but depends on cost competitiveness and consumer acceptance. The project reflects an expansion stage within the brand’s regional electrification strategy, with potential spillovers across Mercosur supply chains. Market impact will depend on pricing strategy, local content levels and policy incentives for hybrid technologies.  PSR

The Agritechnica 2025 trade show, held under the guiding theme “Touch Smart Efficiency,” cemented the industry’s focus on integrating digital intelligence with advanced hardware to achieve higher yields while ensuring environmental and economic sustainability. The primary trend was the transition of alternative power and robotics from concepts into commercially available, high-performance machinery.

The 2025 show was bigger than the previous show in 2023–there were more attendees (476,000 vs. 470,000) and exhibitors (2849 vs 2812) and more countries represented (171 vs. 149). The total space for the two shows was the same–394,000 sq in 24 halls at the Hanover Exhibition Center in Hanover, Germany. The bi-annual show ran Nov. 9-15.

Key New Models and Technology Unveiled
Manufacturers focused heavily on hybridization, automation, and engine efficiency:

• Hybrid and Next-Gen Power Systems:
  • Zoomlion DV3504 Hybrid Tractor: A flagship hybrid tractor (350hp class) featuring a distributed intelligent electric drive system (MIDD) for high traction and fuel efficiency, showcased performing autonomous harrowing operations.
  • Zoomlion H7-600E Hybrid Harvester: The world’s first hybrid large-capacity intelligent combine harvester, pairing a 480hp engine with an 11.55 kWh battery to achieve a peak output of over 600hp, offering improved efficiency and reduced energy consumption.
  • Fendt 800 Vario Gen5: Powered by the new AGCO Power CORE80 engine (8-liter, 252 kW), this release highlights a focus on highly efficient, low-emission diesel technology with enhanced torque (1680 Nm).
  • AGCO Power Future Battery Concept (150 kWh): A key component of the electrification push, demonstrating a dedicated, in-house developed battery for agricultural machinery.
• Automation and Robotics:
  • XAG P150 Max Agricultural Drone & R Series Rover: The P150 Max drone offers an 80kg payload for autonomous spraying and spreading, while the R Series Rovers (R100, R200) are designed for precision crop protection in controlled environments like orchards and greenhouses, emphasizing robotic task automation.
  • DEUTZ-FAHR Tractor Assisted Guidance System (TAGS) (Silver Award): An advanced AI-based stereo vision and real-time 3D mapping solution specifically designed for improved safety and automation in the variable terrains of agricultural operations.
• Specialized Machinery and Components
  • Merlo HyperCompact Telehandler Concept: A debut concept focused on high maneuverability and performance in confined spaces, like traditional farm buildings.
  • BKT AGRIMAX PROHARVEST VF 1020/55 R38 CFO Tire: A massive tire designed to reduce soil compaction on high-capacity combines through a large, evenly distributed footprint.

Main Topics and Discussions
The guiding theme, “Touch Smart Efficiency,” steered the main industry discussions:

1. Sustainable Productivity Growth: This was highlighted as the new overarching goal, shifting the focus from mere yield to yield balanced with ecological resource consumption. This requires measuring and evaluating performance in terms of climate protection and biodiversity alongside economic viability.
2. Digitalization and Automation Integration: The trade show emphasized software-driven processes and digitally integrated systems. The debut of the Digital Farm Center in Hall 21 showcased the importance of robotics, AI, cloud-based data platforms (like MerloMobility), and sensor technology for real-time decision support and optimized farming.
3. Alternative Fuels and Energy Transition: Discussions continued regarding the use of “drop-in” renewable fuels like RME and HVO in current diesel models, while the high-power sector saw advancements in hybridization (e.g., Zoomlion’s harvesters) and dedicated battery-electric solutions for smaller machines (e.g., AGCO Power’s battery concept).  The latter was also a testimony of the challenges in electrification of large tractors.  AGCO new battery will most likely in series production only after 2027, if not later.  PSR

Emiliano Marzoli is Manager-European Operations for Power Systems Research

The Electric & Hybrid Marine Exhibition 2025 held June 24 – 26, 2025, featured increased corporate collaboration and demonstrated a focus on sustainability, the adoption of immersive technologies, and enhanced connectivity.

These development trends were built on a collaborative approach to maritime electrification and decarbonization and reflect incremental improvements as well as a strategic shift toward smarter, greener, and more autonomous marine operations.

The show was held at the RAI Amsterdam complex and lasted three days. About 200 exhibitors participated, including leading companies in electric and hybrid marine technology, propulsion, and charging infrastructure.

Representatives of Power Systems Research attended the show to collect data on new products and to talk with exhibitors and attendees about industry trends.

The 2025 Exhibition emphasized port electrification, alternative fuels, and infrastructure development.

The next exhibition will be held in Chicago, August 20 – 21, 2025, indicating that this clean marine movement is growing worldwide. The Electric & Hybrid Marine Exhibition is becoming a key place for sharing new ideas, working together, and aiming for cleaner oceans and greener shipping.   PSR

Download the complete Show Report here.

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe for Power Systems Research

In its EV Global Outlook 2025 report, the IEA says that 20% of new cars sold worldwide in 2024 were electric, a definition that includes plug-in hybrids as well as battery-electric cars.

Prior to President Trump’s election, it was predicting US EV sales would be nearly half of all new car sales by 2030.The IEA now expects battery-electric and plug-in hybrid vehicles to account for just 20% or so of US sales in 2030

Source: Clean Technica: Read The Article

PSR Analysis: The irony is that most of that money was scheduled under the IRA was to flow to Republican states, but now the jobs and tax revenues those funds would have made possible, are in danger of being lost. By the end of the current administration in the USA, they will be many years behind the rest of the world and may not be able to catch up.   PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

In Thailand, major Japanese and Chinese automakers are requesting government support for HVs and EVs. At a time when the growth of electric vehicles has slowed, Toyota Motor Corporation President Akio Toyoda visited Thailand and appealed to the prime minister for measures to promote hybrid vehicles. The Chinese are also demanding that the conditions for EV subsidies be relaxed, and they are lobbying hard for the largest automotive industry base in Southeast Asia.

According to a Thai government statement, Toyota’s chairman and the Thai prime minister discussed measures to promote Thailand’s automotive industry, including finished vehicles and parts suppliers. They discussed the promotion of hybrid vehicles, and the Prime Minister reportedly expressed a positive attitude toward government support.

According to the Federation of Thai Industries (FTI), cumulative new car sales in Thailand from January to November were 518,659 units, down 27% from the same period last year. While the overall market is struggling to grow due to stricter car loan screening, sales of EVs, which grew 7.8 times year-on-year to about 76,000 units in 2023, fell 5% year-on-year to 61,443 units in the January-November period of 2024. On the other hand, sales of HV increased 32% year on year to 105,434.

In terms of support measures, the plan was to increase the 6% excise tax on EVs by 2% every two years, but in July it was decided to keep it at 6%. However, there is a big difference in the preferential treatment, as EV purchase subsidies of up to US$2,900.86 (100,000 baht) will be provided from 2024 and the excise tax will be kept at 2%.

The Thai government plans for 30% of cars produced in the country to be EVs by 2030. However, a Japanese automotive executive said, “The Thai government has also realized that EVs are starting to fall into the ‘chasm’ (the gap before widespread adoption) and is looking for ways to make corrections to its course.”

Starting in 2022, subsidies for electric vehicles were provided, and this attracted more than 20 Chinese car brands to the market. These Chinese companies have also been increasing pressure on the Thai government since around the summer of 2024. Under the EV promotion policies, they receive subsidies, but they are also required to meet production obligations. They must increase the number of EVs they import in 2022-2023 to the same amount as the number of EVs imported in 2024, and then to 1.5 times that amount in 2025. However, due to the slowdown in the EV market, an increasing number of major Chinese automakers have been unable to meet their production quotas. Failure to do so will result in penalties, such as having to return subsidies received, so several companies have asked the government to relax the quotas.

In response, the government decided in early December 2024 to relax the EV production quotas. In addition to allowing production obligations to be carried forward to 2025 and beyond, the government is also expected to introduce a system that will allow the re-export of vehicles imported from China, reducing the number of vehicles imported in 2022-2023, which will be reflected in the production obligations.

Source: The Nikkei

PSR Analysis:  As a market where the competition between EVs and HVs can be visualized, this news from Thailand is probably the easiest way to show the situation. At present, the scale of measures to promote EVs is larger than that of HVs, but Japanese brands still hold a 70% market share in Thailand, and if investment in HVs increases in the future, there is a possibility that measures to promote HVs will also be reviewed. And while it may be an ironic statement, it could also be said that this simply shows that it will be difficult to popularize both EVs and HVs without subsidies or promotional measures. While many people are predicting a challenging outlook for the Thai auto market in 2025 due to factors such as stricter credit screening, the government’s policies will have a major impact on the market. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

Hybrid vehicles are gaining traction in India as a practical alternative to fully electric vehicles (EVs), a trend driven by strategic manufacturer initiatives, evolving consumer preferences, and infrastructural and policy challenges.

Major automakers like Maruti Suzuki, Toyota, Nissan, Hyundai, and Kia are launching hybrid models to meet the increasing demand for fuel-efficient and environmentally friendly vehicles. Hybrids offer a balanced solution, providing the benefits of both internal combustion engines and electric powertrains without the range anxiety associated with EVs.

Despite higher taxes on hybrids compared to EVs, the slow development of EV infrastructure and long waiting periods for EVs make hybrids a more viable option for many consumers. The hybrid market is expected to continue its growth, supported by ongoing innovation and potential policy adjustments to reduce costs, positioning hybrids as a crucial component in India’s journey towards sustainable transportation.

Source: Fortune India     Read The Article

Strategic Moves by Manufacturers. Car manufacturers in India are focusing on hybrid vehicles to cater to the market’s evolving needs. Maruti Suzuki, in collaboration with Toyota, plans to introduce hybrid models like the Maruti Innova HyCross and Toyota Urban Cruiser HyRyder. Nissan is set to launch hybrid versions of its X-Trail and Qashqai models. Hyundai and Kia are also entering the hybrid segment with plans to launch hybrid SUVs by 2026, marking a strategic pivot from their initial emphasis on EVs due to slower-than-expected adoption rates in India.

Consumer Preferences and Market Dynamics. Hybrids are becoming popular among Indian consumers because they offer better fuel efficiency and lower emissions without the range anxiety linked to fully electric vehicles. They provide a practical solution by blending traditional internal combustion engines with electric drive capabilities, making them an attractive choice in a market where the EV charging infrastructure is still under development. The affordability and convenience of hybrids are key factors driving their increased adoption.

Market Performance and Projections. Hybrid vehicle sales in India have seen significant growth, with a 38% increase in fiscal Q1 2024, capturing a 2.1% market share. This growth surpasses that of EVs, which experienced a slight decline in the same period. Globally, hybrids are also witnessing faster sales growth compared to EVs. This trend is expected to continue, driven by new hybrid model launches from major automakers like Hyundai, Kia, and Toyota, which currently leads the hybrid market in India.

Infrastructure and Policy Considerations. The slow development of the EV infrastructure and the high Goods and Services Tax (GST) on hybrid vehicles (43% compared to 5% for EVs) are significant barriers to the widespread adoption of fully electric vehicles in India. Reducing the GST on hybrids could make them more affordable and accelerate their adoption. This policy adjustment would support achieving carbon reduction goals by providing an immediate, practical solution rather than waiting for the EV infrastructure to fully develop. Investments in hybrid technology and components further support the transition to more sustainable transportation solutions.

Conclusion. The growing preference for hybrid vehicles in India is driven by strategic manufacturer initiatives, consumer demand for practical and cost-effective solutions, and the current limitations of EV infrastructure. With ongoing innovation and potential policy adjustments to reduce the cost burden on hybrids, this segment is poised to play a crucial role in India’s journey towards electrified and sustainable transportation. The increasing acceptance of hybrid vehicles reflects a significant shift towards greener and more sustainable automotive technologies in the Indian market.  PSR

Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research

China may place 25% tariffs on EVs in retaliation for similar moves by the US and the European Union. Read about this as well as articles on new battery development, the decline in diesel sales and a new battery from CATL in the June 2024 Alternative Power Report from Power Systems Research. PSR