Chinese automakers have made 1.5-liter four-cylinder engines common across models including the GWM Haval H6, BYD Song Plus and SUVs from Chery. The engines are not all identical, but the article traces many designs to shared engineering roots, tax incentives and the savings manufacturers gain by producing related powertrains at scale.
The story points to Toyota and Mitsubishi technology as an early influence. Around 2003, Toyota and China’s FAW began producing small engines based on Toyota’s 8A architecture, while Geely and other companies adopted Japanese designs. Mitsubishi also licensed its Orion engine family, including the 4G15 and 4G18, which helped inform later Chinese powertrains. The article says Chery worked with engineering firm AVL from 2003 to develop its Acteco engine line and now offers more than 20 technical variants based on a common foundation.
Tax rules are another reason for the 1.5-liter focus: the article says displacement above 1,500cc can bring higher taxes in China and neighboring Asian markets. Sharing engine families also spreads development and production costs across models and sub-brands. Modern versions use features such as direct injection, variable-geometry turbochargers and Atkinson- or Miller-cycle operation. Hybrid systems can provide extra assistance when moving heavy SUVs from a standstill.
The article contrasts this approach with Brazil, where tax breaks focus on engines up to 1.0 liter and Chinese SUVs instead benefit from electrification incentives. It notes that Brazil’s IPI rules are due to shift in 2027 toward vehicle power rather than engine displacement.