Extended-Range Hybrids Gain Popularity Among Chinese Car Buyers
Extended-range electric vehicles (EREVs) gaining popularity in China due to extended range and affordability. Major Chinese EV manufacturers developing or planning to develop EREVs to meet consumer demand. EREVs accounted for a significant portion of electric car sales in China last year and continue to grow in market share.
Referred to as extended-range electric vehicles (EREVs), these cars, a subset of plug-in hybrids, feature a small internal-combustion engine that can provide additional power to charge the battery when necessary, alongside the option to be charged via a power cable.
According to Davis Zhang, a senior executive at Suzhou Hazardtex, EREVs can travel up to 1,000km on a single charge and are approximately 10% cheaper than pure-electric alternatives, resulting in potential savings of around 30,000 yuan (US$4,220) per purchase.
With the exception of Shanghai-based Nio, all major electric vehicle manufacturers in China have either developed EREVs or announced plans to do so in response to the increasing demand from consumers. Gao Shen, an independent analyst in Shanghai, noted the significant shift in the Chinese EV sector towards EREVs, which were previously disregarded by major carmakers a decade ago due to poor market prospects.
Last year, carmakers in China delivered 623,000 EREVs, marking a 173% increase from the previous year and accounting for 2.9% of total electric cars sold. In the following month, EREVs represented 10.2% of the EV market with 114,000 units delivered.
Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto, highlighted that the affordability and longer driving range of EREVs are attracting more customers, especially in light of inadequate charging infrastructure, particularly in rural areas, which is expected to drive sales growth over the next few years.
Several Chinese EV manufacturers have recently revealed their plans to venture into EREVs. Zeekr Intelligent Technology, a premium EV maker under Geely Auto, announced intentions to design and produce hybrid models, while Avatr Technology, the EV unit of Changan Automobile, is pursuing a similar strategy. Additionally, Xpeng, a Chinese rival to Tesla, has made progress in developing its first EREV after securing contracts with key car component suppliers.
Li Auto, a Beijing-based premium EV manufacturer, has been a pioneer in building EREVs. Founder Li Xiang emphasised the importance of addressing range anxiety among Chinese drivers, leading the company to focus solely on EREVs. Last year, Li Auto delivered 376,030 vehicles to Chinese buyers, representing 60% of the country's total EREV sales.
China continues to dominate global electric vehicle sales, accounting for 65% of all electric car sales in the first half of this year, surpassing petrol-engine cars for the first time in July. Major automakers like BYD, Volkswagen, and Toyota have also seen an increase in hybrid car sales in mainland China, with a notable rise in their market share compared to the previous year.
Extended-range electric vehicles (EREVs) gaining popularity in China due to extended range and affordability.
Major Chinese EV manufacturers developing or planning to develop EREVs to meet consumer demand.
EREVs accounted for a significant portion of electric car sales in China last year and continue to grow in market share.
Source: SCMP