Electric Vehicles with ICE Hybrid Technology, or EREVs, are gaining interest among lovers of Internal Combustion Engines (ICE), according to McKinsey.

In the automotive industry, Extended-Range Electric Vehicles (EREVs) are generating growing interest, particularly among owners of premium-brand vehicles and larger cars and SUVs. According to a study by global consulting firm McKinsey, the U.S. consumer market is poised to drive early growth in EREVs.

McKinsey's survey of over 2,800 new-car buyers in the U.S. and 2,300 in Germany and the U.K. found that between 13% and 18% of respondents would consider buying an EREV for their next vehicle. This suggests a significant market for these vehicles, which combine a small internal-combustion-engine-powered generator with an electric powertrain, offering an electric-only driving range of 100-200 miles (161-322 km).

One of the key advantages of EREVs is their potential to alleviate consumer concerns over range and charging infrastructure, particularly among urban dwellers. McKinsey's report, Could Extended-Range EVs Nudge More Car Buyers Toward Full Electric?, suggests that EREVs could serve as a bridge technology for consumers challenged by the lack of reliable and cost-effective public charging infrastructure.

For instance, in a McKinsey modeled scenario, an EREV pickup truck with a 150-mile (241 km) electric range and a total range of 500 miles (805 km) or more could be designed using a 68-kWh lithium-nickel-manganese-cobalt-oxide battery pack, while a comparable BEV would need a 228-kWh battery pack to deliver the same range, suggesting cost savings for EREVs.

Automakers are recognizing this potential. Ford plans to bring multiple EREVs to market by 2028, including electrified SUVs such as the Expedition and Explorer with range-extender technology. Genesis is also developing the GV80 EREV with a planned launch around 2027–2028, featuring a small gasoline engine to charge the battery for extended range. Chinese manufacturers like Weltmeister and XPeng are preparing EREV models, with XPeng's X9 EREV offering over 1600 km (994 miles) total range expected soon.

However, the report warns that automakers need to consider the increased complexity involved in building EREVs over BEVs. An EREV platform would cost around $1 billion to develop for one million units, and the cost savings would need to be passed on to consumers to make the technology attractive to consumers wary of BEV technology and public charging infrastructure.

Examples of earlier EREVs that met with mixed market acceptance include the Chevrolet Volt, BMW i8, and i3. However, with improvements in technology and consumer understanding, EREVs are poised to become a more viable option for those transitioning to electric driving.

The Mazda EZ-6, available as both a BEV and an EREV, features a 1.5L gasoline engine serving as a range extender with an electric range of up to 124 miles (200 km) under the CLTC standard. Similarly, the 2025 Ram 1500 Ramcharger, available in the U.S., has a pure electric range of 145 miles (233 km) and a total driving range of 690 miles (1,110 km).

As new EREV products continue to come to showrooms, including the 2025 Ram 1500 Ramcharger and several models from Scout, Volkswagen Group's U.S.-based BEV pickup truck/SUV maker, Jeep, and South Korean automaker Hyundai, it seems that EREVs are becoming a more viable option for those looking to transition to electric driving while addressing concerns over range and charging infrastructure.