EREVs offer a bridge to full electrification

EREVs operate differently from both pure electric vehicles and plug-in hybrids. While they are powered exclusively by electric motors, they also carry a small combustion engine that acts solely as a generator. This engine never drives the wheels. Instead, it recharges the battery when it runs low, allowing the vehicle to continue operating without plugging in.

How EREVs Work

At the heart of an EREV is an “electric-first” powertrain. The vehicle drives purely on battery power until the charge is nearly depleted. At that point, a small internal combustion engine activates, not to power the wheels, but to generate electricity. That electricity can be used to drive the electric motor directly or recharge the battery, depending on demand.

This separation of propulsion and energy generation sets EREVs apart from plug-in hybrid electric vehicles (PHEVs). In a PHEV, the combustion engine and electric motor both drive the wheels. In contrast, an EREV’s wheels are always powered by electricity, regardless of whether the energy is coming from the battery or the generator.

A Growing Segment in China

While EREVs have seen modest adoption in some Western markets, the technology has gained real momentum in China. Li Auto, founded in 2015, is the leading EREV manufacturer globally. In 2024 alone, the company delivered over 500,000 vehicles, marking a 33% year-on-year increase.

Its lineup includes models like the Li L6, a 2025 luxury SUV with a total driving range of 1,390 km. The vehicle accelerates from 0 to 100 km/h in 5.4 seconds and uses a 1.5-litre petrol engine as its range extender. Other models in Li Auto’s portfolio, such as the L7, L8 and L9, are premium SUVs that have been central to the brand’s rapid growth.

Chinese drivers have embraced EREVs in part because the vehicles address infrastructure challenges. In dense urban areas where home charging is difficult and long-distance travel is common, EREVs offer flexibility without giving up the core advantages of electric driving.

Mixed Interest in Western Markets

EREVs have had a more limited presence in Western markets. BMW’s i3 with Range Extender was among the first EREVs sold widely in Europe and North America. The model featured a compact combustion engine that activated when the battery neared depletion, providing up to 276 miles of total range. However, production ended in 2022.

Mazda also experimented with the format in its MX-30 R-EV, using a small rotary engine as a range extender. It provided around 50 miles of battery-only range and approximately 400 miles in total. The model was pulled from North America in 2023 following low demand.

The upcoming Ramcharger, a large pickup truck from RAM, may reinvigorate the segment in North America. The truck will combine a 92 kWh battery with a V6 engine generator, offering 150 miles of electric range and 690 miles total. It’s designed to address range and performance challenges associated with pure electric trucks, particularly for towing and long-distance driving.

Benefits of EREVs

EREVs are designed to eliminate one of the main concerns with electric vehicles: running out of charge. Because the range extender only activates when necessary, most daily driving can be done on electricity alone. This means EREV drivers can benefit from lower running costs and zero-emissions driving in urban areas, without worrying about whether a charger is available at the end of a long journey.

The electric-only range of EREVs typically falls between 50 and 150 km, depending on the battery size. For many users, especially those with short daily commutes, that’s enough to operate entirely on battery power most of the time. When longer trips are required, the petrol generator ensures continued operation without interruption.

Additionally, the combustion engine in an EREV runs at a consistent speed, optimised for efficiency, unlike in traditional hybrids, where the engine has to respond to varying driving conditions. This can lead to lower fuel consumption when the engine is used.

Trade-Offs and Challenges

Despite their benefits, EREVs are more complex than either BEVs or standard hybrids. They require both an electric propulsion system and a combustion-based generator, which can increase production costs and long-term maintenance needs. This dual system can also make packaging and weight distribution more challenging, particularly in smaller vehicle segments.

EREVs typically have a shorter electric-only range than purpose-built BEVs, which may limit their appeal as battery technology continues to improve. For example, while a BEV may offer 300–600 km of electric range, most EREVs today are limited to around 100 km before the generator is needed.

There are also regulatory and market hurdles. As global emissions standards become stricter, vehicles that rely on any form of combustion engine – no matter how efficient – may face future restrictions. Additionally, many consumers are unfamiliar with the EREV format, often confusing it with conventional plug-in hybrids.

Outlook

EREVs appear best suited as a transitional technology, particularly in markets where charging infrastructure is limited or unreliable. In the short term, they can help overcome the barriers to BEV adoption, especially for consumers living in apartments or rural areas, or for those who need to drive long distances without the certainty of fast-charging availability.

In China, EREVs are likely to remain popular in the near term. However, even market leaders like Li Auto are now expanding into fully electric vehicles, suggesting that the long-term direction of travel is still toward BEVs.

In the Gulf region, EREVs may offer a practical solution for residents interested in electrification but concerned about range or infrastructure. They provide a way to experience the benefits of electric vehicles today, without the compromises that can come with early adoption.