Why New Energy Vehicle Technologies Matter Now
The conversation around New Energy Vehicle Technologies is no longer theoretical. When BYD and Aramco jointly announced their collaboration on next-generation NEV systems, the message was clear: the future automotive battlefield is no longer horsepower—it is energy architecture, efficiency, battery life, and heat management.
From China’s rapidly expanding NEV ecosystem to Europe’s new regulations and the U.S. Inflation Reduction Act (IRA), OEMs and supply-chain partners are rethinking how the entire vehicle functions. TERZO participates in this shift from the perspective of EV fluids, thermal management expertise, and emerging aftersales needs for NEV fleets.
What Defines Modern New Energy Vehicle Technologies?
The term New Energy Vehicle Technologies includes more than “electric cars.” It covers an entire family of propulsion technologies designed to reduce emissions while improving driving efficiency. In global markets, the definition generally includes
BEV (Battery Electric Vehicle)
PHEV (Plug-in Hybrid Electric Vehicle)
HEV (Hybrid Electric Vehicle)
EREV (Extended-Range Electric Vehicle)
Fuel Cell Electric Vehicle (FCEV)
Each technology type drives different requirements in thermal management, battery protection, motor cooling, reduction-gear oil, and even brake fluid selection. For those targeting fleets, OEM dealers, and independent workshops—the differences matter more than ever.
Global Market Momentum Behind NEV Adoption
- China: The world’s largest NEV ecosystem, with BYD, NIO, XPENG and others forming a full supply-chain cluster. NEV penetration surpassed 30% in 2024, with BEV and EREV growing fastest.
- Europe: Driven by Euro 7, CO₂ targets, and rising fuel prices. PHEV sales remain strong due to infrastructure gaps in Eastern Europe and Southern Europe.
- North America: Growth is steady but infrastructure-limited. IRA incentives heavily push PHEV and EREV for cost-sensitive consumers.
- Middle East, Africa, South America: NEV uptake is earlier-stage, but demand for hybrid stability and reduced fuel consumption makes HEVs and EREVs especially attractive.
All regions share one trend: NEV technologies are reshaping lubricant and thermal-fluid demand — even though traditional “engine oil” volumes decline.
Core New Energy Vehicle Technologies Explained
BEV — Battery Electric Vehicles
BEVs rely entirely on battery packs and electric motors. No fuel tank, no engine oil, no spark plugs—yet the system complexity is higher due to:
- Battery thermal management system (BTMS)
- Motor & inverter cooling
- Reduction gear lubrication
- Thermal runaway prevention
BEV fleets demand long-life, oxidation-stable EV thermal management fluid, which maintain viscosity and conductivity stability under 800–1200 charge cycles.
PHEV — Plug-in Hybrid Electric Vehicles
PHEVs run on both electricity and fuel, making lubrication and cooling far more complicated. Their engine experiences:
- Frequent cold starts
- Short thermal cycles
- High fuel dilution
This is why Japanese and Korean OEMs often specify 0W20 hybrid oils, and why TERZO formulates hybrid-specific oxidation inhibitors. PHEVs require not only EV coolant but low-viscosity high-shear-stability engine oils—a profitable category for distributors.
HEV — Hybrid Electric Vehicles
HEVs do not plug in. Their small battery relies on regenerative braking, placing more load on:
- The engine (high cycle frequency)
- The e-motor (heat stress)
- The reduction gear
Again, low-viscosity, high-heat-stability oils dominate, especially in Southeast Asia and LATAM.
EREV — Extended-Range Electric Vehicles
EREVs use a petrol engine purely as a generator. The benefit?
- The engine always works at optimal RPM
- Fuel consumption stabilizes
- Thermal load becomes predictable
- Battery life increases
This architecture—popularized by BYD and Li Auto—is rapidly expanding globally. EREVs consume very little engine oil, but demand advanced battery thermal control fluids due to heavier reliance on electric driving.
Comparative Table — Four NEV Technologies
NEV Type |
Energy Source |
Key Lubricants / Fluids Needed |
Market Strength |
Typical Challenges |
|---|---|---|---|---|
BEV
|
Battery + Motor
|
EV thermal fluid, reduction-gear oil
|
Zero-emission markets
|
Battery heat, high C-rate stress
|
PHEV
|
Battery + Engine
| |||
HEV
|
Regenerative hybrid
|
Low-viscosity engine oil + coolant
|
SEA, LATAM
|
High engine cycling
|
EREV
|
Motor + Generator
|
EV coolant + stable-RPM engine oil
|
China, MEA
|
Motor heat load, battery longevity
|
