SHANGHAI, May 28 (Reuters) - China's BYD

launched on Tuesday the latest version of a plug-in hybrid

technology that improves fuel and cost savings, intensifying

competition with the likes of Toyota ( TM ) and Volkswagen that still

sell mainly gasoline cars.

BYD's chairman Wang Chuanfu unveiled the fifth generation of

the hybrid technology that achieves a record low fuel

consumption of 2.9 litres per 100 km (62.1 miles) on depleted

batteries at an event in Shaanxi province's capital Xian.

With a fully charged battery and a full gasoline tank, the

technology can ensure a driving range of 2,100 kilometers, Wang

said in the city where the company's first automaking factory

was located.

BYD also launched sedan versions of its Qin L and Seal 06

models, both equipped with the new technology and priced from

99,800 yuan ($13,775).

Customers using the new technology can save up to 9,682 yuan

a year in fuel costs compared to those who drive gasoline

models, the company said.

BYD's last generation of plug-in hybrid technology - which

touts a driving range of dozens of kilometers on batteries and a

fuel consumption of 3.8 litres per 100 km purely on the gasoline

engine - has buoyed its rapid growth since 2021 with models such

as the Qin Plus DM-i sedan and Song Plus DM-i SUV.

Plug-in hybrids priced from 79,800 yuan have made up the

bulk of BYD's sales in the past three years, with an accumulated

3.6 million such cars sold by the company.

The Chinese company slashed prices of its plug-in hybrids by

10%-22% in the first quarter, with Qin and Song outselling

gasoline models such as Lavida and Sagitar in the mass market

with lower prices and less fuel consumption attracting

cost-sensitive Chinese buyers.

Globally, BYD, which has been accelerating its international

expansion, still trails multi-branded automakers including

Toyota ( TM ), Volkswagen, General Motors ( GM )

and Stellantis ( STLA ) in sales.

BYD, together with other Chinese EV makers, is posing more

of a challenge to Japanese automakers in overseas markets such

as Southeast Asia, Australia and Middle East, where governments

impose fewer trade barriers and tariffs.

Toyota ( TM ) also showcased on Tuesday next-generation engines

which it said would be compatible with alternative fuel sources

such as e-fuels and biofuels to reduce carbon emissions and

revamp vehicle design by allowing for lower hoods.

Unlike the hybrid technology Toyota ( TM ) pioneered with the Prius

in 1997, the plug-in hybrids led by Chinese automakers use

larger battery packs and can drive much longer on electricity.

($1 = 7.2448 Chinese yuan renminbi)