Range-extended EVs outstrip competition with fast growth

Visitors inspect the Aito M9 at the Chengdu auto show in late August. The SUV is available in range-extended and pure electric variants. (CAO YINGYING/CHINA DAILY)

Sales of range-extended electric vehicles are growing much faster than pure electric ones, prompting more automakers to focus on developing such models.

REEVs feature an electric powertrain for propulsion and a small internal combustion engine to charge the vehicle's battery, extending the driving range and tackling driver anxiety over range.

Data show that in 2023, sales of REEVs reached 640,000 units, jumping 181 percent year-on-year. In the first half of this year, nearly 470,000 units of REEV were sold, up 124 percent.

In July, sales of pure EVs reached 505,000 units, a slight increase of 0.9 percent year-on-year. Sales of plugin hybrids were about 318,000 units, up 73 percent year-on-year. Meanwhile, sales of REEVs soared 115 percent to 122,000 units, according to data from the China Passenger Car Association.

These figures indicate that REEVs are the fastest-growing segment among new energy vehicles, which primarily include pure electric, plug-in hybrid and range-extended vehicles. Despite their relatively small volume, REEVs hold significant potential for growth.

Such models from brands like Li Auto and Aito, which focus on REEVs, have been well-received by customers and become profitable.

Even automakers dedicated to pure EVs, such as Leapmotor, Deepal, Neta and Voyah, have launched or are about to launch such models, despite initial controversy surrounding the technology.

Recently, more automakers have announced their entry into the REEV segment. Xpeng, for instance, is developing its first REEV model, which will be a large SUV and is expected to start mass production in the second half of 2025, according to a news report.

Similarly, SAIC's premium EV arm, IM Motor, will launch a range-extended SUV to compete with Li Auto's L7 in the first quarter of 2025.Geely's Zeekr also plans to launch models with such technology.

On Aug 21, Changan's premium NEV brand, Avatr, launched its Kunlun range-extended technology in Shanghai, claiming it will deliver a driving experience almost identical to that of pure EVs.

Globally, Hyundai, Ford and Stellantis are showing interest in the REEV approach, especially amid the slowdown in EV demand in Europe.

In late August, Hyundai announced it plans to start mass production of new REEVs in both North America and China by the end of 2026, with sales beginning in early 2027.

Hyundai is targeting a range of up to 900 kilometers for its future REEVs.

The automaker views the technology as a bridge to full EV adoption before the necessary charging infrastructure is built and battery costs fall.

The emergence of range-extended technology is being driven by consumer demand, although the technology was overlooked due to its simple structure, which limited its ability to offer multiple driving modes, said industry experts.

Cui Dongshu, secretary-general of the China Passenger Car Association, said that compared with pure EVs, range-extended cars do not require large batteries, saving costs and space. They have a simpler structure than plug-in hybrids and their generators reduce collision risks, enabling them to better meet consumer needs.

Regarding the market prospects for REEVs, products typically exceed 4.9 meters in length, classified as mid to large sized high-end vehicles, said Zhu Xichan, a special expert of the China Society of Automotive Engineers and a professor at Tongji University.

Zhu noted that compared to plug-in hybrids, range-extended vehicles have larger batteries, longer electric ranges and can host more advanced digital configurations due to their size.

Some experts believe that, despite being labeled a transitional technology, REEVs could become a mainstream option in the near future.

Ouyang Minggao, an academician of the Chinese Academy of Sciences and a professor at Tsinghua University, stated that within five to 10 years, the share of REEVs and plug-in hybrids in the overall NEV market is expected to increase to 30-40 percent.

Range-extended technology remains controversial among some automakers. BMW CEO Oliver Zipse has criticized range-extended vehicles for their limitations, such as outdated technology, high maintenance costs, poor energy conversion rates, high prices and limited model options.

Mercedes-Benz once developed and tested an EQS range-extended prototype but reportedly halted the project, citing high production costs and unsustainable advantages.