Volkswagen is planning to start manufacturing of an EREV pickup truck and SUV beneath the Scout model title beginning in 2027.
Volkswagen
Main automakers are set to resurrect a kind of hybrid car that appeared lifeless within the U.S. just some years in the past to fulfill a altering client demand panorama.
Prolonged-range electrical autos (EREVs) are a type of plug-in hybrid that falls halfway between conventional hybrids and full EVs. EREV automobiles and vans depend on battery powered motors for propulsion (like an EV) but additionally have a comparatively small fuel engine to make use of as a generator to maintain the batteries charged up (like a typical hybrid). A key distinction between EREVs and different hybrids is the relative dimension of their batteries and fuel engines.
Mainstream hybrids and plug-in hybrids (PHEVs) just like the Toyota Prius nonetheless depend on combustion engines as their essential technique of propulsion. Thus, they’ve proportionately smaller batteries, however substantial fuel engines which can be immediately related to their drivetrains to assist transfer the automotive. EREVs are far more targeted on the electrical facet of the equation, so they have a tendency to have greater batteries than different hybrids, however comparatively small fuel engines that solely perform as mills to prime off the batteries when wanted.
Earlier examples of this kind of car – the Chevy Volt and Fisker Karma – had been launched to the united statesmarket in 2011. These had been adopted by the BMW i3 and Cadillac ELR in 2014. However EREVs (also referred to as Vary Prolonged Electrical Autos, or REEVs), by no means attracted a lot curiosity from American shoppers. The Volt was the preferred EREV by far, with GM promoting 157,000 over 9 years, till it ended manufacturing in 2019. That will appear spectacular, but it surely’s a blip within the general U.S. new car market, which noticed about 16 million gross sales annually in that timeframe.
The final EREV bought domestically was the i3, which BMW discontinued in 2022. Whereas there are not any new EREVs on the market within the U.S., a number of are within the pipeline.
This consists of an upcoming model of the Ram 1500 pickup truck, set to come back to market in early 2026. A Ram spokesman famous that it’s going to have the longest driving vary the corporate has ever provided in a light-duty truck, as much as 690 complete miles between its fuel engine and battery energy. An EREV model of the Jeep Grand Wagoneer can be beneath growth, based on the corporate. Volkswagen is planning to start manufacturing of an EREV pickup truck and SUV beneath the Scout model title beginning in 2027.
Ram 1500 prolonged vary hybrid pickup, set to come back to market in early 2026, could have the longest driving vary the corporate has ever provided in a light-duty truck, as much as 690 complete miles between its fuel engine and battery energy.
RAM | Stellantis
Hyundai Motors plans to introduce EREV variations of its mid-sized SUVs by the tip of 2026, based on a spokesman. The autos are anticipated to have greater than 560 miles of vary, and be bought beneath the Hyundai and Genesis manufacturers. As well as, a Nissan spokesman confirmed that the corporate is contemplating providing EREV choices in its mid-size and bigger SUVs. “They do supply benefits versus 100% EVs relating to hauling and towing,” he stated, “permitting better driving vary with out the necessity for a big capability battery, in addition to quicker refueling.”
James Martin, the director of consulting providers at S&P International Mobility, says one purpose producers are turning to EREVs is decrease manufacturing prices. EREV use of smaller and cheaper batteries than full EVs permits producers to maintain their bills down. EREVs are additionally much less advanced than plug-in hybrids, Martin stated. PHEVs have two functioning propulsion techniques and complex controls to permit them to speak with one another. Most EREVs, in contrast, are solely propelled by their electrical motors.
Vary anxiousness, and value, nonetheless huge elements in EV adoption
However one of many greatest benefits of EREVs is vary. In China, the place EREVs are gaining in reputation, the producer BYD presents mid-sized sedans with greater than 1,300 miles of claimed vary. EREVs additionally alleviate vary anxiousness because of the ubiquity of fuel stations. Customers can simply refill with gasoline to cost the battery if a charging port is unavailable. The brand new EREVs can journey greater than 100 miles on batteries alone, then lots of extra utilizing gasoline.
“Vary anxiousness continues to be an element relating to selecting an electrical car over an inside combustion car,” stated Okay. Venkatesh Prasad, senior vice chairman of analysis and chief innovation officer on the Middle for Automotive Analysis. “EREVs, allay the vary anxiousness concern,” he stated.
These hybrids could particularly attraction to shoppers who incessantly journey lengthy distances, and getting extra shoppers used to plugging of their autos may also attraction to producers. “The precise charging expertise of EREVs is similar to that of BEVs,” Prasad stated. “So, the market adoption of EREVs is more likely to be seen as an excellent ramp to future BEV buy concerns,” he added.
Charging infrastructure continues to be lagging in lots of areas of the U.S., based on iSeeCars.com government analyst Karl Brauer, which may make a full EV impractical for shoppers. EREVs keep away from that problem and can also be enticing to shoppers who dwell in flats or homes that lack charging stations.
A latest report from McKinsey famous that EREVs might additionally fight value considerations amongst shoppers, noting that the smaller batteries can shave off as a lot as $6,000 in powertrain manufacturing prices, in comparison with BEVs. One other issue, based on McKinsey, is that each home and European producers have seen how EREVs have gained gross sales momentum in China, an indication the know-how could assist to extend electrification adoption in their very own marketplaces.
“We count on all ranges of hybridization to extend manufacturing in North America all through the last decade,” stated Eric Anderson, the affiliate director of Americas mild car powertrain forecasting for S&P International Mobility. Hybrids, together with EREVs, are a “comparatively inexpensive method for shoppers to maneuver up the electrification ladder with no important month-to-month cost improve, he stated.
Whereas the EV car market continued to develop final 12 months, the tempo of development has slowed significantly. “The BEV market is within the means of shifting from early adopters to a extra price-conscious purchaser,” Anderson stated.
Home gross sales of hybrids grew from 1,175,456 in 2023 to 1,609,035 in 2024, based on the U.S. Division of Transportation, a 37% improve. Plug-in hybrids grew 10% in the identical interval — from 293,578 to 321,774. By comparability, absolutely electrical EVs noticed 7% development, from 1,164,638 to 1,247,656. Whereas general gross sales of conventional inside combustion engine (ICE) autos continues to dominate, its market share has fallen yearly since 2015, based on Edmunds. Final 12 months, ICE car gross sales fell to 80.8% of complete U.S. gross sales, down from 84% in 2023.
One other attribute that may make EREVs widespread with shoppers is resale worth. Hybrids – which incorporates EREVs and extra widespread plug-in hybrids – depreciate lower than EVs or conventional fuel autos. Since depreciation is the most costly a part of automotive possession, discovering a car that higher retains its worth can present shoppers with important financial savings. Against this, electrical automobiles and vans lose worth quicker than every other car sort – dropping by 58.8% after 5 years, in comparison with the general car depreciation common of 45.6% and solely 40.7% for hybrids, based on analysis from iSeeCars.
“Electrical car gross sales have been slowing on each the brand new and used market, with EVs sitting on supplier tons longer regardless of falling costs,” Brauer stated. “Customers are exhibiting growing appreciation for hybrid autos, making a pleasant atmosphere for automakers to introduce extra plug-in hybrids as an intermediate step towards full electrical autos.”
