Chinese Automaker Claims 48% Thermal Efficiency Engine, Surpassing Toyota’s Hybrid Tech

Omoda & Jaecoo, the export brands of Chinese automotive giant Chery Group, unveiled plans for an internal combustion engine achieving 48% thermal efficiency at their International User Summit in October 2025. If realized, this would dramatically outpace the industry standard and even exceed Toyota’s class-leading hybrid powertrains.

The announcement signals that while the world races toward electrification, some automakers believe ultra-efficient combustion technology still has a critical role to play. And they might be right.

Breaking the Thermal Efficiency Barrier

Thermal efficiency measures how much energy from burned fuel actually powers a vehicle versus being lost as heat. Most modern gasoline engines hover between 38-45% efficiency, while Toyota’s acclaimed hybrid systems top out around 40-41%. Chery’s target of 48% would represent a quantum leap.

The math is compelling. Each percentage point gained in thermal efficiency translates to roughly 2.5% better fuel consumption, meaning Chery’s engine could theoretically deliver substantially better fuel economy than today’s most efficient hybrids while also cutting CO2 emissions proportionally.

But reaching 48% isn’t just incremental improvement—it requires rethinking fundamental engine design. Chery’s R&D team is pursuing what they call “radical innovations”: an ultra-high compression ratio of 26:1, triple-link hyperbolic mechanisms, 35% exhaust gas recirculation (EGR), and advanced thermal insulation coatings.

These aren’t minor tweaks. For comparison, most engines run compression ratios around 10:1 to 13:1. Doubling that while managing the extreme heat and pressure involved represents serious engineering ambition.

Current Tech Already Impressive

While the 48% engine remains in development, Chery’s current production technology is already noteworthy. Their SHS (Super Hybrid System) combines a 1.5-liter TDGI engine running the Miller cycle with two electric motors and an intelligent DHT transmission, achieving 44.5% thermal efficiency today.

That system delivers fuel consumption as low as 6 liters per 100 kilometers (39.2 mpg)—figures that would make many American hybrid drivers envious. The system offers 56 miles (90 km) of all-electric range, automatic driving mode optimization based on speed and load, and a battery pack engineered to resist heat, shocks, and even water immersion.

Safety features include a rapid-response system that cuts power within 2 milliseconds during a collision. The SHS also includes Vehicle-to-Load (V2L) capability, allowing it to power external devices up to 3.3 kilowatts—useful for camping, tailgating, or emergency power needs.

The Hybrid Bet

Chery’s strategy reveals an interesting divergence from the all-or-nothing approach some Western automakers have taken toward electrification. While acknowledging that electrification remains central to their long-term plans, Omoda & Jaecoo executives argue that “hybrids will remain the most practical path to reducing global energy consumption for years to come.”

This perspective aligns with real-world adoption patterns. Despite growing EV sales, hybrids continue outselling pure electrics in many markets where charging infrastructure lags or where consumers face range anxiety. Ultra-efficient hybrids like Chery’s SHS could narrow the cost gap with EVs while eliminating range concerns entirely.

The company claims their efficiency gains could help hybrids enter what they call the “1-liter fuel consumption era”—approaching the energy costs of pure electric vehicles while maintaining the convenience of liquid fuel.

Not Coming to America (Yet)

Here’s the catch for U.S. readers: Omoda and Jaecoo exist solely as export brands, and Chery hasn’t announced American market plans. The brands launched in Europe in 2024, with strong early sales in the UK, Spain, and Italy. They’re also expanding across Asia, Latin America, and other global markets.

Chery has indicated plans to eventually enter the United States, but that’s likely years away given the regulatory complexity and fierce competition in the American market. For now, U.S. drivers can only watch from afar as these hyper-efficient hybrids roll out elsewhere.

EVXL’s Take

This announcement deserves attention from American EV enthusiasts, even if these particular vehicles won’t reach U.S. shores anytime soon.

First, it challenges the narrative that combustion technology has plateaued. If Chery actually delivers a 48% efficient engine—and that’s still an “if” until we see production units—it would prove there’s still headroom for improvement in traditional powertrains. That could influence development priorities at American and European automakers who might have written off combustion tech too early.

Second, the hybrid strategy makes pragmatic sense for much of the world. While wealthy coastal American cities build out charging networks, vast global markets still lack reliable infrastructure. Ultra-efficient hybrids offer a bridge technology that reduces emissions today rather than waiting for a fully electric future that may be decades away in developing regions.

Third, Chinese automakers continue demonstrating technical sophistication that shouldn’t be underestimated. Whether it’s BYD’s Blade Battery, NIO’s battery swap stations, or now Chery’s thermal efficiency claims, these companies are innovating aggressively. American EV makers who dismiss Chinese competition as “cheap knockoffs” are living in the past.

The real question: Can Chery actually deliver on the 48% promise? The jump from their current 44.5% to 48% might sound small, but those final percentage points are exponentially harder to achieve. We’ve seen plenty of automaker claims that didn’t pan out in production.

But if they pull it off, it could reframe the entire electrification timeline conversation. Maybe the future isn’t purely electric or purely combustion. Maybe it’s hyper-efficient hybrids that make both technologies irrelevant for longer than anyone expected.

What do you think? Share your thoughts in the comments below.