The FIA World Rally Championship has announced Compact Dynamics will supply hybrid equipment to the series from 2022 and plans have been drawn up to reduce the running costs of the new regulations.

The German based firm are well-established hybrid technology suppliers with equipment already being used in the FIA Formula E, Formula 1 and World Endurance championships and have signed a three year deal from 2022 to also work in the WRC.

FIA Rally Director Yves Matton said on the news: “Rally1 continues to gather momentum ahead of its 2022 launch.”

“Following the approval of the Technical Regulations for this new class at the last World Motor Sport Council a few weeks ago, we are now very pleased to announce Compact Dynamics as our exclusive supplier of hybrid equipment from 2022, which is the result of a rigorous analysis and evaluation of the various proposals received by the FIA departments.”

He continued: “I am convinced Compact Dynamics will bring a wealth of experience to the program. Additionally, the measures approved yesterday will enable us to achieve cost reduction in both development and annual maintenance costs, alongside a simplified process.”

As well as the news of the hybrid supplier, the championship has also revealed a set of plans to help cut costs when it comes to developing and running the new cars.

These include the base engines being similar to those of what are currently run in the championship with many of the parts being the same and less engines being allowed to be used by each team per year.

The new hybrid regulations are scheduled to arrive in the championship in 2022 after the end of the current generation of rules which have been in place since 2017.