New Energy Outlook (ID: xinnengyuanqianzhan) Original

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"Don't buy extended-range vehicles, they're just a transitional technology and will eventually be phased out."

For a long time, when extended-range vehicles were mentioned, most people's first reaction was to sneer at them.

Do you think it's only 'ordinary people' who dismiss extended-range vehicles?

Tracing back, when Lixiang launched its first extended-range vehicle, the Lixiang ONE, it endured ridicule from many automotive industry insiders and professionals, such as "Extended-range vehicles are not environmentally friendly and are a poor solution" and "Isn't this just going backwards?"

Five years later, who would have thought that the once-reviled extended-range vehicles have now become the darlings of the industry, and those new energy vehicle brands that bet on them seem to have reaped the benefits in this field, firmly establishing themselves at the forefront of the new energy vehicle sector.

Given these favorable conditions, in today's automotive industry, the topic of extended-range vehicles has become another battleground for new energy vehicle brands to compete and layout.

The slap in the face seems to have come quickly, but this is not the fault of our automakers. After all, the market trend and consumer preferences are not easy to predict.

From the initial "utter disdain" to the current "truly delightful," what lies behind the contradictions brought about by extended-range vehicles?

1. "Transitional" models rediscover the "truly delightful" law

In October, due to the increased commuting distance to and from work, Liao Xinyue (a pseudonym), a post-90s individual, considered replacing her gasoline-powered car with an electric vehicle to save costs. After several rounds of screening, she settled on the Deep Blue S05 Extended Range version.

"This car comes in two versions: pure electric and extended range. I chose the extended range version mainly due to range anxiety. In summer, it's fine, but in winter, when temperatures in Shenyang drop below minus 20 degrees Celsius, the performance of pure electric vehicles is certainly inferior to that of extended-range vehicles."

Image/ Deep Blue S05 Extended Range Version

Source/Screenshot from New Energy Outlook on the Internet

Fang Yue (a pseudonym), a prospective owner of the Lixiang L6, is a carefree person. In his words, he chose an extended-range model as a compromise because he didn't want to be limited by charging stations during road trips when driving a pure electric vehicle.

"Before owning one, I didn't really understand what an extended-range vehicle was, but after buying one, I discovered that even in a low battery state, an extended-range vehicle is more economical than a gasoline-powered vehicle," said Han Su (a pseudonym), owner of a Landwind FREE.

Of course, during our interactions with New Energy Outlook, there were not a few people who shared similar views as Liao Xinyue, Fang Yue, and Han Su. Thus, among the many consumer demands, extended-range vehicles stand out as the "darling" that can satisfy the needs of most consumers.

Data from the China Passenger Car Association shows that from January to September this year, the cumulative sales of extended-range vehicles reached 811,000 units, accounting for over 11% of total new energy vehicle sales; this represents a year-on-year growth of 109.8%, which is over six times that of pure electric vehicles and nearly twice that of plug-in hybrid vehicles.

Specifically, in terms of brands, in September's sales rankings for new energy vehicle startups, the top three were Lixiang, AITO, and NIO, all of which have extended-range models as their main offerings.

Image/Sales Rankings for New Energy Vehicle Startups in September 2024

Source/Screenshot from New Energy Outlook on the Internet

At the same time, after reviewing the sales performance of various new energy vehicle brands in September, it is not difficult to see that the rise of brands such as Deep Blue and Landwind, which have achieved significant year-on-year and month-on-month growth in monthly sales, is inseparable from the contributions of their extended-range models.

It is worth noting that due to the sales benefits of their extended-range layouts, several new energy vehicle startups have also achieved impressive profitability.

In 2023, Lixiang became the first new energy vehicle startup to achieve annual profitability thanks to its extended-range models. This year, Seres has successfully turned a profit in the first three quarters thanks to its three extended-range models: AITO M7, AITO M9, and AITO M5.

Therefore, for an automaker today, the value of joining the extended-range family is self-evident.

2. Future trend or expedient measure?

By now, you may still be somewhat puzzled as to why extended-range vehicles have developed so rapidly.

This largely stems from the advantages of extended-range hybrid technology.

First, in terms of technology, the engine in an extended-range vehicle is only used to generate electricity and does not directly drive the vehicle, whereas a plug-in hybrid vehicle can be driven by both electricity and gasoline. Therefore, the driving experience of an extended-range vehicle is closer to that of a pure electric vehicle.

Image/Difference between Plug-in Hybrid and Extended-Range Vehicles

Source/Screenshot from Zhideyan Consultancy and New Energy Outlook

Second, in terms of maintenance, since extended-range vehicles do not have complex power transmission devices coupling the engine and motor, there are significantly fewer potential failure points compared to plug-in hybrid vehicles, making maintenance more convenient. Of course, if maintenance is required, the technical difficulty of repairing an extended-range vehicle is significantly lower than that of a plug-in hybrid vehicle.

"Vehicle comfort is a must-check point when I buy a car. When buying an electric car, based on range anxiety, I considered both extended-range and plug-in hybrid vehicles. After test-driving several models, I clearly felt that extended-range vehicles offer a driving experience closer to that of pure electric vehicles," said Han Su.

During our interactions with New Energy Outlook, most extended-range vehicle owners shared similar sentiments with Han Su, believing that extended-range vehicles offer the driving experience of a pure electric vehicle without the range anxiety associated with long-distance travel.

Thus, on the path to full electric vehicle adoption, the interoperability of extended-range and pure electric vehicles gives them more momentum compared to gasoline-electric hybrids, making them valuable in the long run.

Cui Dongshu, secretary-general of the China Passenger Car Association, said, "Extended-range is definitely not a transitional technology, and the market share of extended-range models is expected to continue to rise in the foreseeable future. By innovatively combining the technical advantages of extended-range with the consumer experience, enterprises can bring new and unprecedented competitiveness to the extended-range segment."

Based on this, many automakers have planned to "embrace" extended-range technology this year.

For example, Zeekr's first SUV model with an extended-range version will be launched in 2025; XPeng Motors will introduce an SUV model using an extended-range solution in 2025; and Xiaomi will launch an extended-range SUV in 2026.

Image/From left to right: XPeng, Zeekr, Xiaomi (web images)

Source/Screenshot from New Energy Outlook on the Internet

But does joining the extended-range automaking camp necessarily mean reaping the benefits?

In fact, everything has two sides to it, with advantages and disadvantages.

Industry insiders said that while most extended-range vehicles now use 1.5T engines, eliminating the problem of loud noises emitted by the range extender during operation, when the battery is low, the vehicle's power may still be insufficient, and there may be noticeable jerkiness during full acceleration.

Zhu Xichan, a professor at the School of Automotive Studies, Tongji University, and a specially appointed expert of the China Society of Automotive Engineers, also noted, "There are still some pain points with extended-range vehicles, such as significant power degradation when the battery is low, loud engine startup noises, relatively small battery capacity, and slow charging."

In the future, when these pain points are addressed one by one, the driving experience of extended-range vehicles may finally rival that of pure electric vehicles.

3. Addressing pain points will elevate the future of "oil-to-electricity" conversions

Looking back at the popular extended-range vehicle models currently on the market, it seems that behind their impressive sales figures lies a "tough" battery as a backbone, but "tough" does not mean "flawless".

At present, the batteries of extended-range vehicles on the market still have some pain points.

In terms of battery capacity, extended-range vehicles on the market currently suffer from small battery capacities and large fuel tanks, which means that owners need to charge their cars every day or every other day.

In terms of battery life, due to frequent charging caused by small battery capacities and low winter temperatures, the battery life of extended-range vehicles is shorter than that of pure electric vehicles.

In terms of charging time, although extended-range vehicles have a range extender, when charging conditions are available, their batteries mostly use slow or fast charging methods, resulting in low charging efficiency and long waiting times for owners.

Ms. Ruan (a pseudonym), owner of an AITO M9, said, "What I like most about this car is the stability of its pure electric range, but the battery capacity is still a bit small, with a CLTC pure electric range of just over 200 kilometers. If it were half again as much, I wouldn't have to charge it every day."

Image/AITO M9

Source/Screenshot from New Energy Outlook on the Internet

"To be honest, I'm quite satisfied with the range of my car, and it's more than enough for my daily commute with just charging. But in the future, I hope the charging speed of extended-range vehicle batteries can be faster. Currently, even with fast charging, it takes 30-40 minutes to charge from 20% to 80%, which is too time-consuming," said Mr. Liang (a pseudonym), owner of a Lixiang L7.

Therefore, to elevate the status of extended-range vehicles, not only do automakers need to continue innovating in their products, but battery manufacturers must also make concerted efforts.

As a leader in China's power battery industry, Contemporary Amperex Technology Co., Limited (CATL) has taken the lead. On October 24, CATL's super extended-range battery brand, Xiaoyao Battery, was officially unveiled. It is reported that this battery is not only bulletproof in terms of safety but also the world's first with a pure electric driving range of over 400 kilometers, and its 4C ultra-fast charging technology can add over 280 kilometers of range in just 10 minutes of charging.

Image/Xiaoyao Super Extended Range Battery Launch Event

Source/Screenshot from New Energy Outlook live stream

Gao Huan, CTO of CATL's Domestic Passenger Vehicle Business Unit, said, "Currently, the Xiaoyao Super Extended Range Battery has been adopted by Lixiang, AVATR, Deep Blue, Qiyuan, and Nezha. It is expected that by 2025, nearly 30 extended-range models, including those from Geely, Chery, GAC Motor, and Landwind, will be equipped with CATL's Xiaoyao Super Extended Range Battery."

As soon as this series of news was released, it sparked heated discussions online. "When mass production starts, I'll be the first to try it out and make other new energy vehicle owners envy me!" "With this, I won't have to worry about range anymore and can finally experience the savings of electricity over gasoline." "It goes far, charges fast, and is not afraid of cold weather. I'm sold!"

The strengthening of extended-range vehicles with the support of "Xiaoyao" means that the advantages of new energy vehicles are even more pronounced.

By then, when pure electric vehicles and extended-range vehicles enter the fray at their strongest, the timeline for the phase-out of gasoline-powered vehicles will undoubtedly accelerate. The process of replacing fossil fuels with new energy will also be more orderly and efficient.