Ever heard of an EREV?
If so, congrats—you’re ahead of the curve.
Extended range electric vehicles have taken off in China and are gaining interest from domestic automakers, but the technology faces a nagging obstacle: US consumers largely have no idea what they are. If you fall into that camp, we’ve got you covered.
EREVs are not, in fact, electric vehicles with longer ranges. They are essentially a type of hybrid vehicle.
“You’ve got a gasoline engine that is connected to a generator that feeds into a relatively large battery pack,” K.C. Boyce, a VP in Escalent’s automotive and mobility and energy industry practices, explained in an interview. “The battery pack then feeds into an electric traction motor, which provides propulsion for the vehicle. So essentially what that allows for is a longer all-electric range than a typical plug-in hybrid arrangement, along with consistent performance, because it’s always the electric traction motor that is providing drive.”
What’s in a name? EREVs aren’t a new concept; models like the Chevy Volt have come and gone. But they’ve never succeeded at gaining much traction in the US.
New research from Escalent on alternative powertrains suggests that, despite would-be buyers’ lack of familiarity with the tech, EREVs could be an opportunity for US drivers and automakers alike—but some changes in terminology might be required.
Escalent’s survey of new-car buyers found that more than 40% don’t know what EREVs are.
“Given the unfamiliarity of most buyers and the confusion that most buyers seem to have with this idea of ‘EREV’ as a name,” Boyce said, “we think that it may be more advantageous to brand the EREV powertrain as ‘PHEV [plug-in hybrid electric vehicle] with no compromise,’ or ‘PHEV plus.’”
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Advantages: Escalent analysts describe EREVs as a best-of-both-worlds solution for certain consumer segments. They allow drivers to tap into existing gas infrastructure, alleviating concerns about having to use public EV charging infrastructure, while delivering the same performance benefits as fully electric vehicles.
Stellantis’s Ram brand has announced plans to launch an EREV truck in the US, which Ward’s Auto reported would offer 145 miles of battery range plus 545 miles from the range extender.
Analysts at Escalent posit that the tech can serve as a middle ground between internal combustion engine vehicles and battery-electric vehicles for consumers who aren’t quite ready to go fully electric. US consumers continue to be held back from adopting EVs because of price and concerns about public charging.
“I think there is definitely a lot of opportunity for the EREV powertrain in the US market,” Boyce told us. “It addresses a lot of pain points that consumers have historically had about full electric vehicles, while offering a lot of the benefits of full electric vehicles.”
To take advantage of this white space in the market, Escalent analysts say that automakers need to overcome misconceptions consumers have about the technology, market them in a way that avoids confusion, and target the right vehicle and consumer segments.
Escalent’s research suggests that EREVs would fit well in the luxury segment across various model types, including mid-size and large SUVs.
“Automakers that are first movers can win,” Ben Lundin, an insights director in Escalent’s automotive and mobility practice, told Tech Brew, “but obviously it needs to be a great product.”