Chinese automakers are at the forefront of developing electric vehicles with gasoline generators, known as range extenders (EREV), to alleviate range anxiety. These vehicles combine a battery, electric motors, and a small gasoline generator to extend their driving range.
In 2024, EREV technology experienced significant growth in China, with sales exceeding one million units, capturing 6% of the market share. While this is less than the 28% market share held by electric vehicles, the growth of EREVs indicates a rising demand for vehicles that bridge the gap between traditional gasoline cars and fully electric vehicles. Bloomberg New Energy Finance (BNEF) reports that manufacturers like SAIC Motor and Zhejiang Geely Holding are embracing EREVs, with Li Auto leading the Chinese market in this sector.
Global automakers are also recognizing the potential of EREVs. Stellantis plans to launch an EREV version of its Ram 1500 pickup in the United States in the first half of 2025, driven by strong consumer interest. Volkswagen intends to introduce an EREV pickup in the U.S. under its Scout brand in 2027. These models offer a practical solution for consumers seeking electric driving with the reassurance of extended range for longer journeys.
EREVs allow manufacturers to offer vehicles with a substantial electric range, often around 240 kilometers, while potentially costing less than fully electric cars due to smaller battery packs. A McKinsey study indicates that EREV powertrain costs could be $6,000 lower than BEV powertrains. This cost-effectiveness, combined with the extended range, makes EREVs an appealing option for consumers, particularly in regions with developing charging infrastructure or for those with specific needs like long trips and towing.
A survey suggests that nearly a quarter of people in Europe and the United States would consider an EREV for their next vehicle purchase. As battery technology advances and costs decrease, the gap between EREV and BEV production costs is expected to narrow, further solidifying the role of range extenders in the transition to electric mobility.