Carmakers’ new weapon to tackle EV range anxiety

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Western carmakers are betting on a niche technology that allows electric vehicles to travel further with a small engine as they try to fight back against Chinese rivals without destroying European supply chains.

Range-extended EVs sit between plug-in hybrids and fully electric cars. They have a small engine that acts only as a generator to top up the battery, as with hybrids. This means they are better at cutting emissions than hybrids, proponents say.

China’s Leapmotor is the only carmaker selling so-called range-extended EVs in Europe. However, Volkswagen, Renault and BMW are among those considering offering the technology to drivers not yet ready to make the full electric switch.

The electric motor in range-extended vehicles is more powerful than their combustion engines, allowing them to run mainly on electric power. They stand in contrast to what Renault’s chief executive François Provost has dubbed “fake plug-in hybrids” that only have short electric ranges. 

The French carmaker recently announced that it would build midsized electric cars on a new EV-specific platform that would offer 750km for a fully electric version and 1,400km with a range extender.

“We think we can convince 70 per cent of the customers to move to EVs in 2030” with a range-extended option, Provost said.

Stressing that its future was mainly electric, he sought to distance himself from Stellantis and US rivals that are expanding their line-ups of both range-extended and petrol pick-up trucks and large SUVs in North America.

“Range-extended is a clear new trend,” Stellantis chief executive Antonio Filosa told the FT, pointing to its plans to launch such versions of the Ram 1500 Ramcharger truck and Jeep Grand Wagoneer SUV this year.

With a reversal of climate policy in the US and Brussels easing its 2035 petrol ban, industry executives admit the range extender gives them the flexibility to navigate policy uncertainty while addressing consumer anxiety on range and charging for EVs. The rise in petrol prices caused by the Middle East conflict has also triggered interest in vehicles with longer electric ranges.

Beyond these benefits, however, the sudden revival of interest in range-extended EVs is also geopolitical. These vehicles are subject to the higher tariffs the EU has imposed on EVs made in China, while plug-in hybrids are not.

While range-extended EVs have enjoyed the biggest growth in China, the technology was created in Europe and there is no significant gap with Chinese rivals. That’s not the case with EVs, where China has cost power and control over batteries and their supply chains. 

Range-extended EVs come with smaller batteries to make space for the fuel tank — meaning lower costs. It also uses a combustion engine, a traditional stronghold for western carmakers and their suppliers.

“You get electric driving for the vast majority of use cases, but without needing large battery packs and their associated costs. In the west, it also provides a transition that doesn’t strand existing engine capability overnight,” said Ryan Baylis, co-founder of the Faraday Institute who is now operating partner at Volkswagen-backed venture capital firm Leitmotif. 

Every carmaker was “looking at it to say they got something in preparation [for range-extender technology] . . . this is an opportunity for Europe”, said Marco Warth, vice-president for research and engineering at Stuttgart-based Mahle, which makes components for range-extended vehicles.

The big uncertainty for the car industry is how long it would take for consumers to adopt the range-extended EV option — and how long they would want this transitional technology before they were ready for pure EVs.

According to Benchmark Mineral Intelligence, range-extended EVs make up 9 per cent of China’s market for EVs and plug-in hybrids, while the ratio is less than 1 per cent in the rest of the world.

George Whitcombe, senior analyst at Benchmark, said: “By the early 2030s, range-extended EVs may take a significant portion of the plug-in hybrids’ expected market share in Europe” of 12 per cent.

Tianshu Xin, who leads the joint venture between Leapmotor and Stellantis, added that the range-extended model was launched only last year: “It will take some time to educate the customer to understand this technology.”

Critics such as campaign group Transport & Environment have criticised the range extender as “a costly detour”. According to its analysis, these vehicles consume an average of 6.4 litres per 100km after the batteries are depleted, which is similar to a petrol SUV.

“If range-extended EVs replace other hybrids or pure combustion engines, then it’s a win,” said T&E’s cars director Lucien Mathieu. “But if they replace it for an electric car, that’s a loss.”

Justin Lunny, chief executive of Everrati, which converts classic cars into EVs, cautioned that the technology was unlikely to last long term: “Once battery technologies move on . . . all of this becomes less relevant.”