In this recorded webinar session, we explore how advancements in extended-range electric vehicles (EREVs) can encourage traditional car buyers to adopt full electric vehicles. As battery-electric vehicle (BEV) sales growth slows in many markets, the automotive industry is exploring new ways to accelerate electrification momentum. EREVs, which combine the benefits of electric driving with the flexibility of a gasoline engine for longer trips, have reemerged as a potential solution to assuage range anxiety and cost concerns among current owners of internal combustion engine (ICE), hybrid, and electric vehicles.
Mobility experts provide an in-depth walkthrough of EV trends and technology, product design, consumer insights, and the regulatory environment. By addressing the top sources of unease among car buyers - price and driving range - EREVs offer significant economic value to shareholders. Findings from a survey of approximately 2,800 US new car-buyers revealed that a substantial segment would consider an EREV for their next vehicle purchase if the option were available and affordable, highlighting the potential of EREVs to motivate ICE vehicle owners to transition to electric driving.
Despite their inherent capacity to quell range anxiety and their strong sales momentum in China, EREVs are still relatively scarce in the global market. However, interest in EREVs is higher among owners of premium-brand vehicles and larger cars and SUVs, indicating a key market segment that might embrace this technology. The importance of consumer education to clearly convey the benefits of EREVs and differentiate them from PHEVs, BEVs, and other hybrid vehicles, particularly in the US market, becomes increasingly clear.
Overall, EREVs could help smooth the transition from ICE vehicles to BEVs by serving as a bridge technology for consumers while charging infrastructure is improved and expanded. For OEMs, achieving lower production costs and providing attractive price points could represent a significant opportunity to revitalize EV sales growth.