Why automakers should hybridize their BEVs

Between 2021 and 2023, car manufacturers invested €265 billion in EV technology. The future of the automotive industry seemed destined to be battery-powered, with combustion engines becoming a thing of the past. The reality, however, has not turned out that way. 

Despite a legislative and manufacturer push toward EVs, hybrid and combustion cars have endured. According to the International Energy Agency, growth in plug-in hybrids increased by over 50% in 2024, a rate of growth that far exceeds the 13.7% growth in global BEV sales over the same period. This paints a clear picture: drivers value hybrids. 

For manufacturers, this creates a difficult situation. Investment and infrastructure have shifted toward BEVs, yet customers are not buying these cars in the numbers anticipated. In fact, by 2035, at least half of global vehicle sales will still be for cars with a combustion engine.

The parallel production challenge

However, the production process for combustion powertrains and electric powertrains is not the same. Powertrain systems are built with different materials, require different technical expertise to develop and implement, and entail major differences in vehicle design and architecture. 

This means maintaining the capability to produce both powertrain types side by side is neither easy nor cheap. Focusing on these under-the-hood components reduces the capacity of automakers to work on other elements of the car, such as in branding, software, and other features. For the modern car manufacturer, these features are increasingly becoming core aspects of their offering - taking the focus away from these could prove costly.  

What automakers need is flexibility, but they can’t achieve this on their own. 

Parallel production can stretch the manufacturing capabilities of automakers

Read more about why the 80/20 rule is reshaping powertrain strategy.

How hybridizing BEVs helps

Historically, it has always been combustion-powered cars that are converted into hybrids, rather than EVs. This is because EVs tend to be designed smaller and more space-efficient, leaving little room to add a combustion engine, while an ICE car has the space and shape to fit battery infrastructure. 

This means that if automakers want to pivot back to hybrids, they’ll have to switch to a combustion-first foundation and waste all the investment and research put into EVs. That is, unless it is possible to add combustion capabilities to EVs. This is the solution Horse Powertrain is offering. 

Through solutions like its Future Hybrid System and HORSE C15 range extender, Horse Powertrain has developed two systems that can allow OEMs to adapt their electric cars. The Future Hybrid System is a compact and integrated engine, transmission, and electric motor unit that can be used to easily convert BEVs into hybrid, plug-in hybrid, or range-extended EVs. The HORSE C15 is an all-in-one engine and generator unit that can fit into the unused space of a BEV to transform it into a range-extended EV. These plug-and-play alternatives allow automakers to use their BEV models as foundations for hybridization, with minimal added cost. 

Read more about how hybrids can speed up decarbonization.

Providing more options for automakers

Rather than shifting focus away from BEVs, automakers can continue investing time, money, and innovation into electric vehicles while still catering to combustion. This will allow them to remain flexible to market demands while continuing to focus their innovation on EVs. 

Hybridizing BEVs is a crucial step toward ensuring the widespread adoption of HEVs and providing the backbone for the next generation of mobility. 

Find out more about Horse Powertrain and our vision.