The automotive industry has expanded with electric vehicles (EVs) becoming mainstream, particularly extended-range electric vehicles (EREVs), which offer both superior efficiency and environmental impact. According to a recent survey by McKinsey and Company, half of new electric vehicle buyers in the U.S. and part of similar numbers in the UK and Germany are considering EREV as a potential choice. These vehicles, powered by a battery-electric motor with a small internal combustion generator, yield a range of 100-200 miles, compared to 20-40 miles for plug-in hybrid models. Meanwhile, a combined powertrain costs of 6,000 dollars lower than those of pure batteries. This cost advantage could attract automakers, but findings from the study suggest that EVs, especially in China, still have the potential to reshape the market.
Consumer interest in EREV is currently rising, as evidenced by a survey showing a 18% increase in EREV interest during the last year, compared to previous years. Despite initial hesitations, these consumers hold a favorable view of EREV’s efficiency and environmental benefits. However, the study also highlights declining battery costs, which could bring the combined powertrain costs of EREV closer to those of internal combustion engines or battery-electric batteries. Despite these considerations, many consumers are still-policy to using EREV due to the understanding that vehicle purchase is a costly decision with long-term sustainability benefits.
The potential dominance of EVs in China, including their sales leading the EV market in 2024, and their widespread use, may encourage consumers from other regions, including the U.S. and UK, to consider EVs. While EREV is seen as a bridge technology, connecting Electric Vehicles (EVs) with shared charging infrastructure and lower range costs, it faces significant hurdles, such as battery costs and infrastructure establishment. Yet, the growing awareness and potential for legislation are paving the way for more consumer adoption.
Looking towards the future, automakers are optimistic about EREVs, planning to fully integrate them into existing EV lines of sight. Companies like Stellaris, which operates RamCharger, and Volkswagen Group, which plans to introduce improved Scventc models, are showcasing EREVs as a viable option. These vehicles offer middle ground for consumers ready to maximize range with lower costs, while still benefiting from the benefits of fully electric vehicles. As EVs take hold in more regions, along with further deployments in China, the convergence of EVs across demographics could
