Traditional hybrid vehicles, once phased out by electric models, are making a comeback in the auto industry. These new hybrids offer extended driving range, providing an alternative for consumers as electric vehicles face challenges.
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Heads Up: Here's a fresh take on the revival of Extended-Range Electric Vehicles (EREVs) in the U.S. market. I've neatly packaged the details and integrated some interesting insights about the behind-the-scenes dynamics of the automotive industry. Enjoy!
The U.S. auto market is abuzz with the return of an old champion–Extended-Range Electric Vehicles (EREVs). These vehicles, a hybrid of sorts between full EVs and traditional hybrids, are making a comeback due to a changing consumer demand landscape.
EREVs, also known as Range Extended Electric Vehicles (REEVs), are divided into two unique categories. They rely on electric motors for propulsion, similar to EVs, but sport a small gas engine primarily functioning as a generator to keep the batteries charged. Unlike conventional hybrids, EREVs have larger batteries and smaller gas engines, prioritizing electric power.
Initially, examples like the Chevy Volt and Fisker Karma hit the U.S market in 2011, followed by the BMW i3 and Cadillac ELR in 2014. Alas, Americans weren't too keen on EREVs, with the Volt topping the charts at 157,000 units sold over nine years. But that's a mere drop in the bucket compared to the 16 million new vehicles that were sold annually during that timeframe.
The latest EREV available domestically was the BMW i3, which BMW discontinued in 2022. However, the future is looking bright with an array of EREVs in the pipeline.
Among these upcoming offerings is an EREV version of the Ram 1500 pickup truck, slated for release in early 2026. This model promises a staggering driving range of up to 690 miles, thanks to its combination of gas engine and battery power. Moreover, Jeep Grand Wagoneer is also reportedly developing an EREV version.
Not one to miss out, Volkswagen is gearing up to produce an EREV pickup truck and SUV under the Scout brand name, set to debut in 2027.Hyundai Motors is planning to introduce EREV versions of its mid-sized SUVs by the end of 2026, boasting more than 560 miles of range. Even Nissan is considering offering EREV options in its mid-size and larger SUVs, citing their utility in towing and hauling while maintaining a substantial driving range.
So, why the sudden love for EREVs? James Martin, director of consulting services at S&P Global Mobility, explains that the lower production costs involved due to the use of smaller, less expensive batteries, and the simplicity compared to plug-in hybrids, are big draws.
One of the key advantages of EREVs is their impressive range. China, a hotbed for EREV popularity, offers mid-sized sedans with a mind-boggling 1,300 miles of claimed range. This eliminates range anxiety since users can simply fill up with gasoline to charge the battery when a charging port isn't available. With this new generation of EREVs, they can travel over 100 miles on electric power alone, followed by hundreds more using gasoline.
According to K. Venkatesh Prasad, senior vice president of research and chief innovation officer at the Center for Automotive Research, EREVs might appeal to consumers who regularly travel long distances and those looking to gradually adopt EVs. "The actual charging experience of EREVs is very similar to that of BEVs," Prasad explains. "The market adoption of EREVs is likely to be seen as a good stepping stone to future BEV purchase considerations," he adds.
It's worth noting that charging infrastructure remains lacking in many areas of the U.S., making a full EV impractical for some consumers. EREVs, on the other hand, sidestep this issue and might also appeal to apartment or homeowners lacking charging stations.
A recent report from McKinsey suggests that EREVs could help tackle cost concerns among consumers, as smaller batteries can shave off as much as $6,000 in powertrain production costs, compared to BEVs. Additionally, the adoption of EREVs in the Chinese market demonstrates their potential to drive electrification in other markets.
Hybrids such as EREVs are projected to see increased production throughout the decade as they serve as a more affordable stepping stone for consumers moving up the electrification ladder. As the pace of growth in the EV market slows, with battery electric vehicles facing some price resistance, hybrids like EREVs present an attractive intermediary solution. Get ready to plug in, America – the future of motoring is electrifying, whether it's pure electric or hybrid!
- The changing consumer demand landscape in the U.S. auto market is contributing to the resurgence of Extended-Range Electric Vehicles (EREVs), which offer a practical, affordable stepping stone towards electrification.
- EREVs, such as the Chevy Volt, are now prioritizing electric power over gasoline, thanks to larger batteries and smaller gas engines, making them more appealing to consumers.
- In 2026, the Ram 1500 pickup truck and Jeep Grand Wagoneer are expected to release EREV versions, promising impressive driving ranges and eliminating range anxiety for consumers.
- Other automakers, like Volkswagen and Hyundai, are also planning to introduce EREV models, capitalizing on the cost advantages and simplicity compared to plug-in hybrids.
- With an array of new EREV offerings in the pipeline, slowing growth in the EV market may see a resurgence in interest as consumers seek more affordable, hybrid solutions.
- Despite challenges like the lack of charging infrastructure, EREVs might become increasingly popular among consumers who travel long distances and apartment or homeowners without charging stations, thanks to their ability to transition seamlessly between electric and gasoline power.
