An EREV stands for Extended Range Electric Vehicle and operates as a battery-electric vehicle with an auxiliary power unit, typically an internal combustion engine (ICE) or generator that recharges the battery rather than directly driving the vehicle. EREVs have two major selling points: higher fuel efficiency than gasoline cars and longer range than electric vehicles.
HIMA exemplifies Chinese consumers’ preference for EREV
HIMA, known as Harmony Intelligent Mobility Alliance, is an alliance led by Huawei that enables its partners to use HarmonyOS operating system and its Autonomous Driving System (ADS). HIMA currently features three vehicle brands: AITO (collaboration with Seres Group), Luxeed (Chery), and Stelato (BAIC Group).
HIMA's share of pure electric (EV) sales increased significantly in April and May 2024, due to the contribution of Luxeed S7, which is a BEV-only sedan model. As of today, only AITO M5 and M9 have both an EREV and EV variant, while the AITO M7 remains purely an extended range electric vehicle.
EREV's popularity is best understood looking at the AITO M9 sales, which at first reached a 3:7 EV to EREV take rate in March, but plummeted to only 8.5% as of May 2024. In early June 2024, AITO introduced an "ultra" version of its M7, but is only offered as an EREV, adding to the Plus and Max versions that are also EREV only. In only 18 days, AITO delivered 10,000 M7, a record the company claims for an NEV model.
Fuel efficiency is king
An EREV consists mainly of a range extender and an electric motor, which is far simpler than a gasoline car. This design reduces manufacturing cost, mechanical complexity, and the overall weight of the vehicle, resulting in a lower failure rate and improved driving performance. Unlike gasoline cars in city driving, EREVs do not have to frequently change engine speed, which helps reduce fuel consumption and achieve stable thermal efficiency. For example, the large SUV AITO M9 only consumes 6.9L per 100km according to MIIT, or a comprehensive fuel consumption of 0.88L per 100km when considering its fuel savings from using the electric battery.
Long range solves range anxiety
Li Auto and AITO are the current front runners in EREV technology. Extended-range vehicles solve the range anxiety that comes with a pure electric vehicle. During long road trips, consumers do not have to worry about insufficient charging stations or long charging times. EREVs also have sufficient pure electric range for daily commutes, which is more economical and environmentally friendly. The AITO M9 has a 225km pure electric and 1,362km comprehensive CLTC range.