In China, sales of extended-range electric vehicles (EREVs) have declined for three consecutive months, raising questions about their current market appeal, as reported by Auto-home. Domestic EREV sales in July, August, and September 2025 reached 106,900 units, 97,400 units, and 105,000 units, respectively, representing year-on-year decreases of 11%, 7%, and 13%.

Compiled by CarNewsChina

Li Auto, the brand largely credited with popularising the EREV approach in China, has seen its sales fall sharply for five consecutive months.

EREVs emerged as a controversial but fast-growing segment in the Chinese new energy vehicle (NEV) market. Between 2021 and 2024, EREV sales increased by 218%, 130%, 154%, and 70.9% year-on-year, while their market share grew from 3.6% to 9.1%.

Li Auto’s 2019 launch of the Li One, which used electricity for city driving and fuel-based power generation for long trips, established the technical model for the segment. Subsequently, domestic brands including Aito, Deepal, Leapmotor, and others entered the market. By 2024, EREV sales exceeded one million units, with 23 brands offering models.

However, in 2025, growth has slowed. Li Auto has shifted focus toward pure electric vehicles after the Mega series, while competitors continue to release EREVs, including Aito M7, IM LS6, Leapmotor D19, XPeng X9, and others. Joint-venture brands such as Buick and Mazda have also introduced extended-range variants.

The decline in EREV sales is closely tied to improvements in pure electric vehicles (EVs). Three main factors are contributing to this trend:

1. Longer EV range – The average range of newly launched EVs in 2025 exceeds 500 km, with some models surpassing 600–700 km, approaching the range of conventional fuel vehicles.
2. Expanded charging infrastructure – By the end of 2024, China had 12.82 million charging units, representing a 49.1% year-over-year increase, with fast-charging stations of 120–180 kW becoming increasingly common.
3. Lower battery costs – Goldman Sachs projects that battery costs will fall to 99 USD/kWh in 2025, 40% lower than in 2022, allowing EVs to reach cost parity with fuel vehicles without subsidies.

As a result, the core advantage of EREVs, mitigating range and refuelling concerns, is diminishing.

In response, new EREV models are moving from a “small battery + large fuel tank” approach to “large battery + small fuel tank.” For example, the IM LS6 extended-range variant features a 66 kWh battery, offering a pure electric range of 450 km. In comparison, the Leapmotor D19 extended-range variant features an 80 kWh battery, offering a pure electric range of 500 km.

Industry views differ on this strategy. Some argue that larger batteries improve the electric driving experience, and the small fuel engine addresses rare long-distance trips efficiently. Others, including Deepal CEO Deng Chenghao, consider it a resource inefficiency, with excess battery capacity increasing costs and emissions without proportional benefit.

Cui Dongshu, Secretary-General of the China Automobile Dealers Association Passenger Vehicle Branch, suggests that large batteries may enhance user experience but should be selectively applied to mid-to-high-end EREV models based on cost-effectiveness.

The recent sales decline reflects a broader shift in NEV technology. EREVs rose by addressing user pain points, but as EVs improve in range, charging convenience, and cost, the advantage of carrying a fuel engine is waning.

While EREVs may continue to serve areas with limited charging infrastructure or users who prioritise “absolute range freedom,” their role may increasingly become a niche choice. Future developments in solid-state or sodium-based batteries could further reduce the relevance of fuel-based range extenders.

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