BloombergNEF has revised its global electric vehicle (EV) adoption projections downward, primarily due to a slowdown in the US market. However, a new trend is emerging: the growing popularity of extended-range electric vehicles (EREVs). EREVs are a type of hybrid vehicle that runs mainly on battery power but has a gas generator as a backup. They are gaining traction, particularly in China, where sales jumped 83% to 1.2 million units in 2024.
EREVs are designed to rely more on electricity than gas, with the wheels driven solely by electric motors and the battery able to be plugged in like a regular EV. The gas engine onboard works as a generator to charge the battery, providing a safety net for drivers who may not have access to reliable charging options. In China, the average EREV has a 39-kilowatt-hour battery pack, an electric-only range of 170 kilometers (105 miles), and operates in electric mode more than 70% of the time.
BloombergNEF projects that EREV adoption will surpass plug-in hybrids in China by the end of the decade, which could serve as a testbed for other regions struggling with EV adoption, such as the US. While EREVs are not yet widely available in the US, several models are in the pipeline, including the Ram 1500 Ramcharger, Nissan’s EREV comeback plans, and Scout Motors’ EREV trucks and SUVs.
The appeal of EREVs lies in their ability to cover most miles on battery power, while providing a backup option for long trips or areas with limited charging infrastructure. As the US charging network improves, EREV owners may increasingly rely on electricity, potentially leading to a transition away from gas-only cars. However, it remains to be seen how mainstream buyers will respond to this new drivetrain, and whether EREVs will ultimately accelerate the adoption of fully electric vehicles.
Despite the uncertainty, EREVs could play a crucial role in bridging the gap between traditional gas-powered vehicles and fully electric vehicles. With their ability to run primarily on electric power and provide a gas generator as a backup, EREVs may help to alleviate range anxiety and charging concerns, making them an attractive option for buyers who are not yet ready to go all-electric. As the EV market continues to evolve, it will be interesting to see how EREVs fit into the broader landscape and whether they can help to accelerate the transition to a more sustainable transportation future.