Major automakers are set to resurrect a type of hybrid vehicle that seemed dead just a few years ago to meet a changing consumer demand landscape.
Extended-Range Electric Vehicles (EREVs) are a form of plug-in hybrid that falls midway between traditional hybrids and full EVs. EREV cars and trucks rely on battery powered motors for propulsion (like an EV) but also have a relatively small gasoline engine to use as a generator to keep the batteries charged up (like a typical hybrid). A key difference between EREVs and other hybrids is the relative size of their batteries and gas engines.
Mainstream hybrids and plug-in hybrids (PHEVs) like the Toyota Prius still rely on Internal Combustion Engines (ICE) as their main means of propulsion. Thus, they have proportionately smaller batteries, but substantial gas engines that are directly connected to their drivetrains to help move the car. EREVs are much more focused on the electric side of the equation, so they tend to have bigger batteries than other hybrids, but comparatively small gas engines that solely function as generators to top off the batteries when needed.
Earlier examples of this type of vehicle – the Chevy Volt and Fisker Karma – were introduced to the U.S market in 2011. These were followed by the BMW i3 and Cadillac ELR in 2014. But EREVs (also known as Range Extended Electric Vehicles, or REEVs), never attracted much interest from consumers. The Volt was the most popular EREV by far, with GM selling 157,000 over nine years, until it ended production in 2019.
In the pipeline
While there are no new EREVs for sale right now, several are in the pipeline. This includes an upcoming version of the Ram 1500 pickup truck, set to come to market in early 2026. A Ram spokesman said that it will have the longest driving range the company has ever offered in a light-duty truck, up to 1,100 Km between its gas engine and battery power. An EREV version of the Jeep Grand Wagoneer is also under development, according to the company. Volkswagen is planning to begin production of an EREV pickup and SUV under the Scout brand name starting in 2027.
Hyundai Motors plans to introduce EREV versions of its mid-sized SUVs by the end of 2026. The vehicles are expected to have more than 900 Km of range, and be sold under the Hyundai and Genesis brands. In addition, a Nissan spokesman confirmed that the company is considering offering EREV options in its mid-size and larger SUVs. “They do offer advantages versus 100 percent EVs when it comes to hauling and towing,” he said, “allowing greater driving range without the need for a large capacity battery, as well as faster refuelling.”
James Martin, the director of consulting services at S&P Global Mobility, says one reason manufacturers are turning to EREVs is lower production costs. EREV use of smaller and less expensive batteries than full EVs allows manufacturers to keep their expenses down. EREVs are also less complex than plug-in hybrids, Martin said. PHEVs have two functioning propulsion systems and sophisticated controls to allow them to communicate with each other. Most EREVs, by contrast, are solely propelled by their electric motors.
But one of the biggest advantages of EREVs is range. In China, where EREVs are gaining in popularity, the manufacturer BYD offers mid-sized sedans with more than 2,000 Km of claimed range. EREVs also alleviate range anxiety due to the ubiquity of gas stations. Consumers can just fill up with gasoline to charge the battery if a charging port is unavailable. The new EREVs can travel more than 160 Km on batteries alone, then hundreds more using gasoline.
“Range anxiety is still a factor when it comes to choosing an electric vehicle over an ICE vehicle,” said K. Venkatesh Prasad, senior vice president of research and chief innovation officer at the Centre for Automotive Research. “EREVs, allay the range anxiety concern,” he said.
Resale value
These hybrids may especially appeal to consumers who frequently travel long distances, and getting more consumers used to plugging in their vehicles might also appeal to manufacturers. “The actual charging experience of EREVs is very similar to that of BEVs,” Prasad said. “So, the market adoption of EREVs is likely to be seen as a good ramp to future BEV purchase considerations,” he added.
A recent report from McKinsey said that EREVs could also combat cost concerns among consumers, noting that the smaller batteries can shave off as much as US$ 6,000 in powertrain production costs, compared to BEVs.
Eric Anderson, the associate director of forecasting for S&P Global Mobility said hybrids, including EREVs, are a “relatively affordable way for consumers to move up the electrification ladder without a significant monthly payment increase”.
Another attribute that might make EREVs popular with consumers is resale value. Hybrids – which includes EREVs and more common plug-in hybrids – depreciate less than EVs or traditional gas vehicles. Since depreciation is the most expensive part of car ownership, finding a vehicle that better retains its value can provide consumers with significant savings. By contrast, electric cars and trucks lose value faster than any other vehicle type – dropping by 58.8 percent after five years, compared to the overall vehicle depreciation average of 45.6 percent and only 40.7 percent for hybrids, according to research from iSeeCars. (CNBC)
