Ni Tao is IE’s columnist, giving exclusive insight into China’s technology and engineering ecosystem. His Inside China column explores the issues that shape discussions and understanding about Chinese innovation, providing fresh perspectives not found elsewhere.
Extended-range electric vehicles (EREV) are emerging as one of the fastest-growing segments in China’s booming new energy vehicle market.
In 2024 alone, sales of EREV models in China exceeded 1.18 million units—a 63 percent year-on-year increase. Notably, over 60 percent of these sales (710,000 units) came from the premium segment priced above RMB 250,000 ($34,013), sales data shows.
The expansion of EREVs has consistently outpaced that of pure electric and plug-in hybrid vehicles over the past few years. According to the China Passenger Car Association, EREV sales surged 206 percent in 2021, 116 percent in 2022, and 173 percent in 2023 year-over-year.
Some industry observers have issued bold predictions for wider adoption of EREVs. “Looking ahead, extended-range (including plug-in hybrid) vehicles could account for 30 percent of the domestic market by 2027,” said Yang Yusheng, a member of the Chinese Academy of Engineering, at the ChinaEV100 conference in March 2025.
The rise of EREVs in China is, in many ways, a comeback story for a once-overlooked and even much-maligned technology.
Working mechanism
The concept of range extension dates back to 1900, when Ferdinand Porsche added a gasoline-powered generator to his early electric car design to extend its range. That invention laid the foundation for what we now call a “series hybrid electric vehicle,” synonymous with today’s EREV.
An EREV uses an onboard range extender—consisting of a small gasoline engine, a fuel tank, and a power generator—to charge the vehicle’s battery when it runs low. The battery then powers the electric motor that drives the vehicle. The range extender does not supply direct propulsion for the car.
The upside? In everyday low-speed driving, the car operates entirely on electricity, delivering a quiet, smooth ride that feels like a regular EV—free from the engine noise of a traditional combustion car.
From an electrical engineering standpoint, EREVs adopt a series hybrid configuration, meaning only the electric motor drives the wheels.
Because they rely on smaller batteries, development cycles are shorter, and overall costs are easier to manage—often making them more affordable than pure EVs. That’s why many up-and-coming automakers see EREVs as a fast track to market entry.
The energy inefficiency problem
Historically, EREVs struggled to win over drivers.
Take BMW’s i3 REx, for instance. Following its debut in 2013, it was plagued by limited electric range, constant recharging needs, and intrusive noise, vibration, and harshness (NVH) when the range extender kicked in—something many drivers found off-putting.
On top of that, since the engine in a range extender doesn’t directly drive the car but instead generates electricity, the conversion process can be inefficient.
At high speeds or under heavy loads, the engine must work harder, burning more fuel to generate power. This results in poor fuel economy—often with overall energy efficiency hovering around 30–40 percent, roughly on par with modern combustion engines.
This undermines many of the environmental and cost-saving advantages typically associated with EVs.
In colder northern regions of China, battery performance drops sharply in winter, and fuel consumption can reach 8–9L per 100km. This challenges the image of energy efficiency often promoted by some EREV developers.
From a long-term ownership perspective, EREVs have inherent disadvantages. They carry an internal combustion engine and an electric drivetrain, and this combination often leads to higher maintenance costs and more potential for mechanical issues.
For reasons stated above, industry experts have long regarded range extension as an outdated or transitional technology—especially when compared to newer hybrid systems like BYD’s DM-i platform.
Unlike EREVs, which rely solely on electric drive, DM-i plug-in hybrids use a more sophisticated structure called “parallel-series hybrid.” This setup allows both the engine and motor to power the wheels.
The dual-drive approach offers better safety redundancy. If the electric motor in an EREV fails at high speeds, the vehicle could lose power completely. Similarly, hybrids powered by DM-i can fall back on the combustion system should its electric drive shut down.
Timing, context and user needs
So, if the technology has so many critics, why has it thrived in China?
The answer lies in timing and context. Chinese automaker Li Auto led the range-extension charge, whose inaugural SUV, the Li One, became an instant success after it was unveiled in 2019.
Key to this was its family-friendly design—”fridge, TV, and big sofa” became a tongue-in-cheek slogan. The spacious six-seat layout appealed especially to Chinese families with two children, who make up 80 percent of Li Auto’s customer base, sales data suggests.
More importantly, Li Auto’s range-extended design solved a real-world problem in China: the lack of charging infrastructure. The Li One considerably reduced range anxiety for early adopters by allowing users to plug in and fill up.
Li Auto’s current models use range-extender systems and have earned strong market recognition. The company has topped weekly sales charts among China’s EV upstarts for two consecutive years.
When critics labeled Li Auto’s tech “backward,” founder Li Xiang shot back: “The debate over technical routes will fade. Whoever solves user pain points will win.”
In short, the rise of EREVs is underpinned less by technological elegance than by practical solutions. It’s a case study of how user needs always drive innovation; however, this might seem “backward” in the eyes of critics.
In a country where the charging network is still catching up, this “dual-power” approach has offered a compelling transition path—at least for now.
A shift toward China’s EV playbook?
Li Auto’s success has sparked a wave of copycats. Several brands—from Aito and Leapmotor to Deepal and Avatr—have adopted range-extended technology with encouraging results. Even pure-play EV builders like XPeng and Xiaomi have announced plans to add range-extended models to their lineups.
Ford CEO Jim Farley, a long-time admirer of its Chinese competition, has praised Li Auto’s recipe for success, saying Ford will double down on the technology. The increasing embrace of range-extended models signals the start of a possible global shift toward China’s EV playbook.
The resurgence of range extension in China underscores a broader truth: technical superiority doesn’t always determine market success. Pragmatism trumps geek culture. What matters more is the right solution for the right context.
Additionally, new waves of innovation further reinforce the competitive edge of range-extended models in China.
As battery technology evolves rapidly to suit the needs of range-extended designs, the future will likely see “big battery, small fuel tank” configurations, with companies like CATL leading the way.
CATL’s new Freevoy Super Hybrid Battery launched last year pushes the electric-only range of EREVs or PHEVs to 400 km. This boost enables city commuters to get by with just one weekly charge. Li Auto’s older models offered just 150–180 km in an EV-first mode.
According to an official statement, CATL’s battery innovation will debut in new vehicles from five brands: Li Auto, Avatr, and Deepal. Moving forward, 30 models across brands like Geely, Chery, GAC, and Voyah are expected to adopt the technology by 2025.
All this suggests that EREVs will remain a mainstay of China’s NEV market for the foreseeable future. However, whether this technology can gain traction globally is anything less than certain, despite the eager endorsement by automakers like Hyundai and Ford.
After all, driving habits, infrastructure, and user expectations vary widely worldwide. What works in China may not translate seamlessly abroad. The road ahead is promising for range-extender advocates with global ambitions—but far from easy.
