Automakers are reviving extended-range electric vehicles (EREVs), a type of plug-in hybrid that uses an electric motor for propulsion and a gasoline engine solely as a generator. This technology aims to alleviate consumer anxieties about EV range and the availability of charging infrastructure. While EREVs like the Chevy Volt and BMW i3 had a brief run in the past, new models from Hyundai, Jeep, Ram, and Volkswagen's Scout brand are in the pipeline, promising total ranges exceeding 500 miles.
Several manufacturers are introducing EREV models with impressive ranges. The Ram 1500 pickup, set for early 2026, is projected to offer up to 690 total miles, including an estimated 145 miles on battery alone. Hyundai plans EREV versions of its mid-sized SUVs by late 2026, with over 560 miles of range, under both Hyundai and Genesis brands. Jeep is developing an EREV Grand Wagoneer with a projected combined range of over 500 miles, utilizing a 92-kWh battery and a 3.6-liter V6 generator. Volkswagen's Scout brand will introduce EREV pickup trucks and SUVs starting in 2027, and Nissan is considering EREV options for its mid-size and larger SUVs.
EREVs offer several advantages, including mitigating range anxiety due to the presence of a gasoline engine for recharging, and providing an alternative for consumers without easy access to EV charging. They are particularly well-suited for larger vehicles like pickup trucks and SUVs, which can experience significant range reduction with heavy loads or in cold weather when fully electric. In China, EREVs are gaining popularity, with BYD offering sedans claiming over 1,300 miles of range. Additionally, McKinsey notes that EREVs could reduce powertrain production costs by as much as $6,000 compared to battery electric vehicles (BEVs) due to smaller battery requirements.
The re-emergence of EREVs comes as hybrid sales are growing significantly, with a 37% increase from 2023 to 2024 in the U.S., reaching 1,609,035 units. Plug-in hybrids also saw a 10% increase. In contrast, fully electric EVs grew by 7% in the same period. While internal combustion engine (ICE) vehicles still dominate the market, their share has consistently declined, falling to 80.8% in 2024 from 84% in 2023. Analysts suggest EREVs provide a crucial middle ground, leveraging existing EV investments while alleviating consumer concerns that have somewhat slowed BEV adoption.
