Just as consumers are turning to hybrid-electric powertrains and away from the more expensive and challenging-to-live-with battery-electric vehicles, they are likely also to consider extended-range electric vehicles (EREVs) as “super-hybrids” without the range anxiety of straight BEVs.

A recent study by global consulting firm McKinsey identifies the U.S. consumer as the most likely market to drive early growth in EREVs. EREVs combine a small internal-combustion-engine-powered generator with an electric powertrain and can offer an electric-only driving range of 100-200 miles (161-322 km), depending on battery size. That compares favorably against a plug-in hybrid’s electric range of 20-40 miles (32-64 km), and a total range of 400-500 miles (644-805 km).

We are already seeing new EREV products coming to showrooms including the 2025 Ram 1500 Ramcharger and several models from Scout, Volkswagen Group’s U.S.-based BEV pickup truck/SUV maker, Jeep and South Korean automaker Hyundai. The latter are expected to launch by 2028, according to company documents and industry reports.

The report, Could Extended-Range EVs Nudge More Car Buyers Toward Full Electric?, says EREVs could serve as a bridge technology for consumers currently challenged by the lack of reliable and cost-effective public charging infrastructure. EREVs also are as easy to use as ICEs, HEVs and plug-in hybrid EVs.

Hesitant consumers may welcome the stress-free driving claimed by EREVs “provided manufacturers can make the technology accessible and clearly distinguish EREVs from PHEVs, other hybrid vehicles and BEVs, particularly in the U.S. market, says the study. Indeed, much education must be done with consumers about emerging powertrain technology.

The study highlights consumer concerns over range and charging infrastructure together with the fact that most urban dwellers live in high-rise apartments, many without garages, or in other types of homes that lack regular access to overnight charging.

The urban-dweller issue, however, is tackled by EREVs, as the ICE powers the batteries in the vehicle when they run out of charge. But urban dwellers still are potentially at the mercy of more expensive public-charging rates rather than cheaper overnight home charging.

Among earlier EREVs that met with mixed market acceptance have been Chevrolet Volt, BMW i8 and i3.

The slowdown in sales of expensive BEV models is once again shining the light on EREVs.

McKinsey’s late-2024 survey of more than 2,800 new-car buyers in the U.S. and 2,300 in Germany and the U.K. found that between 13% and 18% of respondents would consider buying an EREV for their next vehicle.

Two-thirds of these potential EREV buyers note an intent to purchase an ICE or hybrid vehicle in the absence of an EREV option, suggesting EREVs could motivate more ICE vehicle owners to transition to electric driving, McKinsey notes.

Interest in EREVs was higher among owners of premium-brand vehicles than among mass-market brands. There was also slightly higher interest in EREVs among current owners of larger cars and SUVs than among owners of smaller cars.

The report says a key market segment that might embrace EREVs is BEV owners who are considering switching back to an ICE because of frustration with inadequate charging availability and driving range in their vehicles.

In the 2024 McKinsey Mobility Consumer Pulse Survey, for example, 46% of U.S. BEV owners and 19% of European BEV owners reported they are considering switching back to an ICE vehicle.

Despite the EREV technology’s appeal, there remains confusion in the minds of many consumers over the choice of powertrains today, especially among U.S. consumers. Among these car buyers included in the survey sample, 48% agreed with the statement: “I’m overwhelmed by the number of powertrains (currently available) to choose from.” It’s worth noting that most vehicle buyers are not knowledgeable auto enthusiast and are in market for a new car in many cases once a decade. The average ownership cycle in the U.S., for example, is up to almost 13 years.

Global EREV Offerings Scant But Growing

Currently, there are few EREVs in the global market. In the U.S., EREVs in the SUV and truck segment have been announced, including the 2025 Ram 1500 Ramcharger, which reports a 145-mile (90-km) pure electric range and a 690-mile (1,110-km) total driving range. In China, Li Auto has introduced several EREVs, including its L9, which claims a 134-mile (233-km) electric range and an 817-mile (1,315-km) total range while And Aito’s M9 reports a 140- 170-mile (225- 274-km) electric and 840- 871-mile (1,352- 1,402-km) total range.

VW’s Scout Motors has also announced EREV models that, according to the company, have received considerably more deposits than their Terra and Traveler BEVs. Hyundai is developing new EREVs capable of traveling over 559 miles (900 km) between charging sessions.

The Mazda EZ-6 is a midsize car available as both a BEV and an EREV. The EREV variant features a 1.5L gasoline engine serving as a range extender, with an electric range of up to 124 miles (200 km) under the CLTC standard. The EZ-6 went on sale in China last year and arrived in Europe this year as the 6e.

The Leapmotor C10 is a midsize CUV available in both BEV and EREV configurations. The EREV variant utilizes a 1.5L gasoline engine as a range extender, offering a total range of up to 590 miles (950 km). Sales in European markets began in September 2024

McKinsey says an electric range of 100–200 miles would meet most drivers’ daily commuting needs, while a total range of 350- 600 miles (563-966 km could eliminate range anxiety. This may indicate a sweet spot for the EREV market.

The regulatory environment in the U.S. may make it the most favorable market for EREVs while the EU’s dithering over whether to allow carbon-neutral ICEs in new vehicle powertrains after its 2035 deadline makes EREVs’ future more uncertain there.

McKinsey posits that EREV powertrains may be a more future-proof option for automakers than PHEV powertrains because they combine a BEV platform with a small ICE-powered generator that is not directly connected to the wheels in most driving situations.

Meanwhile, with no blanket zero-emissions regulation in place, the U.S. EPA’s current standards tie compliance bonuses to electric driving ranges, which indicates a potential advantage for EREVs over PHEVs. An EREV with a range of at least 70 miles (113 km) could receive a 65% bonus in compliance standards, while a PHEV with a 25-mile (40-km) range could receive a 30% bonus. That could all change, though, as the Trump Admin. is trying to dismantle many of the emissions standards on the federal government’s books.

Even though the California Air Resources Board’s Advanced Clean Cars II rule does mandate 100% electrification in new cars sold by 2035, one-fifth of those vehicles could be PHEVs or EREVs, and manufacturers could receive full credit for each vehicle with an electric range of at least 70 miles.

EREV technology also helps carmakers cut production costs versus BEVs. If focused on providing an electric range of 150 miles (241 km), an EREV’s combined powertrain costs could be as much as $6,000 lower than a BEV powertrain and could even challenge the margins achieved making ICEs.

In a McKinsey modeled scenario, an EREV pickup truck with a 150-mile electric range and a total range of 500 miles (805 km) or more could be designed using a 68-kWh lithium-nickel-manganese-cobalt-oxide battery pack. A comparable BEV would need a 228-kWh battery pack to deliver the same range. In this scenario, an EREV powertrain could cost 30% to 40% less to produce than a BEV powertrain.

McKinsey warns that automakers need to consider the increased complexity involved in building EREVs over BEVs. If an EREV yields an average cost savings of $3,000 over time, two-thirds of which is passed on to the consumer, then an automaker would need to sell at least one million units considering that an EREV platform would cost around $1 billion to develop.

However, the market attractiveness for consumers wary of tying themselves to BEV technology and wonky public-charging infrastructure could also be a deciding factor on how many models come to market.