By Alberto Frammartino, April 28, 2025
Chinese automakers and foreign rivals are accelerating the launch of advanced long-range hybrids and extended-range electric vehicles (EREVs) to meet surging consumer demand in the world’s largest auto market. Unlike other regions, China classifies EVs, plug-in hybrids, and EREVs together as “new energy vehicles,” encouraging brands to offer a broader range of electrified options with longer driving ranges.
EREVs Redefine the Electrification Landscape
EREVs — vehicles (Extended Range Vehicles) that use a small gasoline engine only as a generator to extend battery range — are gaining particular popularity. Models like Zeekr’s 9X plug-in hybrid, capable of traveling 400 km on electric power alone, showcase how Chinese brands are pushing technological boundaries, often exceeding the electric-only range of hybrids sold in the U.S. and Europe.
Electrified Vehicles Outpace Pure EV Growth
In 2023, sales of plug-in hybrids and EREVs in China grew faster than those of pure EVs, though fully electric vehicles continue to dominate the overall “new energy” sector. To keep pace, global automakers like Volkswagen and Mercedes-Benz are investing heavily in hybrid technologies, even as Tesla and environmental groups criticize hybrids as a temporary distraction from full electrification.
Chinese Innovation Powers the Hybrid Surge
Chinese companies are aggressively innovating: battery giant CATL recently launched a 400 km-range battery specifically for EREVs, now used by major brands like Li Auto and Geely. Such technological advancements, coupled with consumer demand for longer driving ranges, are fueling continued investment in the hybrid and EREV sectors.
Future Outlook: Flexibility Drives Growth
Analysts forecast that EREVs and plug-in hybrids will together account for about 35% of future car sales in China, underscoring the market’s flexible, customer-driven approach to electrification.
As Chinese automakers adapt quickly to shifting consumer needs, the hybrid boom is set to play a major role alongside fully electric vehicles in shaping the next phase of the global automotive transition.