America might be facing an electric-vehicle fatigue that the auto industry can’t afford to have.
One study published in June by McKinsey found that almost half of EV owners in the US said they’re likely to turn back to a gas-powered vehicle, citing reasons from range anxiety over an unreliable charging network to the high cost of ownership.
Other problems cited in the study include an inability to charge the vehicle at home and the impacts on long-distance driving.
It’s been a rocky transition in the US from internal combustion engine vehicles to EVs. Sales have slowed, though demand hasn’t dissipated.
One potential solution is fast gaining traction in China, where EVs dominate. However, it does require gas.
What are EREVs?
An extended-range electric vehicle (EREV) is solely propelled by a battery, but the battery itself can be charged by a generator that requires gasoline.
With the generator, the range of EREVs can double that of their pure EV counterparts, even for large vehicles.
Last year Stellantis NV announced the Ramcharger, an EREV truck that promises a 690-mile driving range — more than twice that of the Tesla Cybertruck.
Of course, that gas-reliant generator proposes some environmental trade-offs compared to a pure EV. EREVs still emit pollutants, but one 2020 study published in the Public Library of Science found that the overall environmental impact is lower than hybrid vehicles — which are propelled by an internal combustion engine and an electric motor — and gas-powered vehicles.
The study also noted that EREVs consume about 15% less mineral resources than hybrid electric vehicles and about 35% less fossil energy than gas-powered vehicles.
According to a recent Bloomberg report, the design of EREVs means a smaller battery pack than traditional EVs, reducing the overall costs by about $4,000. However, the battery pack is larger than hybrids, making EREVs more expensive than typical HEVs.
EREVs rise in China
EREVs have yet to catch on in the US, but they’re fast gaining traction in China, where EV makers are seeing record sales numbers.
According to The Detroit News, citing the China Automobile Dealers Association, the country saw 116,00 wholesale shipments of EREVs in 2024, a 113% increase from last year.
A report from Bloomberg New Energy Finance showed that EREV sales more than doubled since last year and now make up 30% of China’s plug-in hybrid sales.
American automakers appear to be taking note.
Following a visit to China, Ford CEO Jim Farley raved about the potential for EREVs as an “in-between” solution for customers at the Bernstein Annual Strategic Decisions Conference in May.
With EREVs, “you get an EV and you have 700 miles a range. You’d have no range anxiety for a long term, you don’t have to rely on any chargers, and those vehicles have half the batteries,” he said.
However, adoption of EREVs in the US could still face barriers from regulators, manufacturers, and environmentalists.
As the Bloomberg report noted, EREVs may not be classified as pure EVs, which means they could be exempt from the $7,500 tax credit.
A GM spokesperson also told the outlet that EREVs are “complicated and costly” to build.
And because they rely on gas, EREVs could be placed under the umbrella of hybrid vehicles, which some environmentalists now argue don’t do enough to push the world toward zero-emissions vehicles.
The Ramcharger is set to be the second EREV sold in the US. The Chevrolet Volt, introduced in 2010, was the first EREV but was discontinued in 2019 as it was marred by low sales amid a shift in consumer preference for larger vehicles.
