New Delhi, Jan. 26 -- In a report, Fitch Ratings predicts that the growth of hybrid electric vehicles (HEVs) will serve as a crucial financial catalyst for Japanese automakers, facilitating the transition to battery electric vehicles (BEVs) over the medium term.

According to Fitch Ratings, the strategic positioning of HEVs as a transitional replacement for internal combustion engine (ICE) vehicles allows automakers to build profits and lay the groundwork for a seamless shift to BEVs.

Japanese automakers have adopted a strategic approach, planning for HEVs to bridge the gap before the widespread adoption of BEVs.

HEV technology, with its established production processes, has become a profitable interim solution, almost on par with tradi...