On November 1, Kang Bo, vice president of Thalys Group, said at the 2024 Global New Energy Vehicle Cooperation and Development (Shanghai) Forum that the industry's attitude towards extended-range technology has reversed. Currently, there are over 35 models from 15 brands on the market, with price ranges spanning from RMB 100,000 to millions.

Kang Bo also stated that extended-range and pure electric vehicles have high platform versatility. In the short term, with it being difficult to achieve a true breakthrough in battery technology, the extended-range solution is crucial for addressing range anxiety.

Remember when Li Auto's promotion of extended-range hybrids was heavily criticized? Nowadays, as the market further tilts towards extended-range hybrids, relevant arguments have long been forgotten. Notably, Li Xiang, CEO of Li Auto, predicted around this time last year: "Chinese independent brands and automakers still adhering to multi-speed PHEV will shift to the extended-range technology path in the next one to two years. This prediction can be verified by 2025."

As we can see, brands like AITO, ZEEKR, AION, IM Motors, which originally focused on pure electric models, have recently announced the launch of extended-range electric models. Some joint venture brands, including Volkswagen, Hyundai, and Ford, have also indicated plans to introduce extended-range models in the Chinese market. Extended-range plug-in hybrids offer an experience closer to pure electric vehicles, with no range anxiety, flexible energy options, lower transaction prices, and greater market appeal.

This shift in technology path is due to the maturity of extended-range electric vehicle technology. Compared to pure electric and conventional hybrid electric vehicles, extended-range electric vehicles offer advantages such as longer comprehensive driving range, higher battery safety, and smoother power output. Additionally, the development of extended-range power systems is less challenging than traditional PHEVs, as the engine does not participate in direct drive, eliminating the need for automakers to have transmission development experience, making it more suitable for pure electric automakers to enter the market.

Moreover, extended-range electric vehicles provide three energy replenishment forms: fast charging, slow charging, and fueling, effectively alleviating consumers' concerns about purchasing new energy vehicles. Rapid growth in market sales reflects increasing consumer acceptance of extended-range electric vehicles. Although they face some regulatory pressures in European and American markets, extended-range electric vehicles have become one of the fastest-growing segments in the Chinese market.

Data shows that in 2021, pure electric vehicles and plug-in hybrid electric vehicles accounted for 83% and 17%, respectively, of new energy vehicle sales in China, with extended-range electric vehicles accounting for about 3%. By 2022, the share of extended-range electric vehicles in new energy vehicle sales increased to 3.6%. Total sales of extended-range electric vehicles in China increased from 14 units in 2016 to approximately 250,000 units in 2022, with market share rising from 0.41% in 2017 to 3.63% in 2022.

Both market share and sales growth indicate increasing market acceptance of extended-range electric vehicles. It is expected that sales of extended-range electric vehicles will exceed 500,000 units by 2025.

Therefore, whether it's a fuel vehicle, a new energy vehicle, an extended-range vehicle, or a pure electric vehicle, a good car is one recognized by consumers. Listening to consumer feedback and making timely adjustments and improvements are more likely to gain recognition than blindly working hard, ignoring market voices and feedback, and pushing products perceived as good onto the market. Choice is more crucial than effort at this moment.

Source: Leitech