The Rise Of Extended-Range Electric Vehicles

Key Concepts

• Extended-Range Electric Vehicle (EREV): A vehicle with an electric motor powered primarily by a battery, but also equipped with a gasoline engine that acts solely as a generator to recharge the battery when depleted.
• EV Utilization Factor: The percentage of distance driven by a vehicle using only electric power.
• Plug-in Hybrid (PHEV): A vehicle that can run on both electricity and gasoline, with both power sources able to directly drive the wheels.
• Powertrain: The group of components that generate power and deliver it to the wheels.
• Stellantis: A multinational automotive manufacturing corporation formed in 2021, parent company of Ram and Jeep.

The Shift from Full EVs to Extended-Range EVs (EREVs) in the US Truck Market

The automotive industry is witnessing a significant shift in strategy regarding electric vehicles, particularly in the truck and SUV segments. Despite the Ford F-150 Lightning being the best-selling EV pickup truck in the US in 2025, Ford has decided to discontinue it, signaling a move away from fully electric trucks in the near term. Instead, automakers like Ram and Jeep are heavily investing in Extended-Range Electric Vehicles (EREVs), predicting they will outsell traditional EVs by a substantial margin.

The Rise of EREVs: A Response to Consumer Concerns

This pivot is driven by addressing key consumer concerns surrounding full EV ownership, particularly in the truck market. Ram, which previously lacked an EV pickup, has abandoned plans for a fully electric model in favor of exclusively pursuing EREVs, launching the “Rev” later in 2025. Its parent company, Stellantis, is extending this strategy to Jeep, with the launch of its first EREV SUV and a phasing out of plug-in hybrid models. Scout Motors, a new EV truck and SUV brand, reports that 80% of reservations are for the EREV version, dubbed the “Harvester.” Hyundai is also entering the US market with EREV options, focusing on larger vehicles.

EREV vs. Traditional Hybrids & Plug-in Hybrids

The core difference between EREVs and traditional hybrids lies in how the gasoline engine is utilized. While traditional hybrids use both the engine and electric motor to power the wheels, an EREV’s gasoline engine solely charges the battery. This contrasts with Plug-in Hybrids (PHEVs), which have a limited electric range (typically 40-50 miles in the US) and can directly power the wheels with both engine and electric motor.

EREVs offer significantly greater electric range – the Scout EREV provides approximately 150 miles of electric driving, while the Ram Rev boasts 145 miles – resulting in total ranges of 500 and 690 miles respectively. This is particularly relevant as the majority of trips taken by Americans are under 75 miles. Ram anticipates a higher “EV utilization factor” (percentage of driving done in EV mode) with EREVs compared to PHEVs.

Global Trends and Market Data

The growth of EREVs is not limited to the US. Globally, the number of EREV models increased by 40% in a single year, from 31 to 43, with almost all of this growth originating in China. Furthermore, EREVs are predominantly found in larger vehicle classes: 70% of the 40 EREV models available in 2025 are SUVs, vans, and pickups, with the remainder being primarily large passenger cars.

Addressing Truck-Specific Challenges

Ram engineer Douglas Killian highlighted the unique challenges faced by truck owners. Factors like carrying heavy loads can reduce EV range by up to 25%, and towing can halve it. While these factors also impact gasoline mileage, they exacerbate existing concerns about charging times, charger availability, and the practicality of charging stations for vehicles with trailers.

Benefits Beyond Range: Powering Work and Recreation

Ram emphasizes the additional benefits of EREVs, such as the ability to power tools, camping equipment, and even entire houses, describing it as a “game changer” and a “segment buster.” This functionality addresses a key need for truck owners who often require mobile power sources.

Competitive Landscape & Future Outlook

Currently, General Motors (GM) does not have an EREV pickup and has not announced plans for one, though CEO Mary Barra has indicated consideration of plug-in hybrids. GM’s current offerings include gasoline vehicles and full EVs, with the Chevrolet Corvette E-Ray as its sole hybrid in the US. Rivian, the software provider for Scout Motors, also has no plans for EREV models.

Potential Drawbacks and Concerns

Despite the advantages, EREVs are not without potential drawbacks. Critics point out that they can still consume significant amounts of gasoline depending on driving habits. Additionally, the combination of electric and gasoline components increases vehicle complexity and maintenance requirements, resembling those of traditional gasoline vehicles. Finally, developing and manufacturing multiple powertrains adds to production costs. However, a representative stated, “There really is not a catch.”

Conclusion

The automotive industry is strategically shifting towards EREVs as a bridge between traditional gasoline vehicles and fully electric options, particularly in the truck and SUV segments. This move is driven by a desire to address consumer concerns regarding range anxiety, charging infrastructure, and the practicalities of EV ownership for demanding applications like towing and hauling. While potential drawbacks exist, the increased range, familiar refueling options, and added functionality of EREVs position them as a potentially dominant force in the US automotive market.