Extended-range vehicles, though they’ve made barely a ripple in the U.S., or in Europe, for that matter, may be poised for growth in the important auto markets.
The power train has both a battery pack and typically an internal combustion engine. Its engine powers the battery, which in turn powers the vehicle. The combined range is therefore greater since it can recharge the battery on the road.
EREVs, as they’re commonly called in the industry – other variations include REEV and BEVx – have made significant inroads in China, where automakers have introduced more than 40 such models since 2020, said Benchmark Mineral Intelligence, a London-based EV supply chain data provider.
EREVs now make up 12% of China’s EV market, while they don’t represent even half a percentage point each of U.S. and European EV sales, according to Benchmark, which sees REEVs standing to gain traction in the two markets, in the U.S. due to the greater freedom they afford drivers.
“The powertrain will enable consumers to have a choice within electrified model line-ups without the same range of constraints as an all-electric alternative” Benchmark said in a recent report on the EREV power train. “This makes it well-suited to a US market that has witnessed several major BEV investment pull-backs by OEMs in recent years.”
Many U.S. automakers have rewritten their EV production plans since the U.S. government eliminated consumer tax credits for EV purchases and leases in October while greatly loosening auto emissions standards.
Ford, for instance, nixed its all-electric F-150 Lightning pickup with plans to make the next Lightning generation an EREV. It hasn’t yet announced launch timing. Stellantis is following suit with the Ram, and Volkswagen sister brand Scout said it will make the same power train pivot with the Terra truck and Traveler SUV.
“BEV development in the US has so far focused on large SUVs and pickup trucks. However, striking the balance between range and vehicle price, given the use of expensive and large high-nickel battery packs, has been a challenge,” Benchmark said.
“Amid weaker incentives for both consumers and vehicle manufacturers to electrify, the launch of REEVs in the US market provides greater flexibility to consumers. It provides them with an electrified option that better suits their range requirements.”
The question in the U.S. and Europe is whether EREVs sold in the two markets will be priced to fit consumers’ budgets. Benchmark said China has achieved that parity, though it’s of course playing on a different field.
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