Global EREV battery capacity deployment is growing six times faster than that of BEVsĀ

Through the first 10 months of 2024 global plug-in hybrid electric vehicle (PHEV) registrations surged by 54% year-on-year to 5.0m units while full battery electric vehicle (BEV) and conventional hybrid electric vehicle (HEV) sales increased 15% and 16%, respectively.
That represents a much more sedate expansion for BEVs in 2024 than years prior. For comparison, in calendar 2023, BEV sales jumped by 29% year-over-year and a whopping 59% growth the year before in 2022, marking the last year that BEV sales growth outpaced that of PHEVs.Ā
Like most trends in the global EV market, Chinese buyers are driving the dramatic swing towards PHEVs. Sales of these best-of-both-worlds EVs were up 81% in the country through the first 10 months of 2024, representing a full 39% of Chinaās EV sales mix. This jump in PHEV sales compares to 21% growth for BEVs and under 1% for HEVs in the nation over the same period.
Sizing up
According to the Adamas Intelligence EV Battery Intel Platform, the combined battery capacity of all PHEVs sold globally from January through October 2024 totaled 115.7 GWh, up 53% over the same period the year prior, representing 17% of all fresh power hours rolled onto the worldās roads.
This growth came on the back not just of rising PHEV unit sales but also an accompanying bump in the average PHEV’s battery capacity, which increased by 12% year-over-year to 23.2 kWh, while the average BEV’s pack capacity increased by just 2% over the same period. Consequently, the sales-weighted average PHEV’s pack capacity is now around 37% that of the average BEV’s.
EREVolution
Behind much of the rapid adoption of plug-in hybrids and the rise in average PHEV pack capacity lies the āextended range electric vehicleā or EREV.
In an EREV, the combustion engine operates solely as a generator for the battery and not for directly driving the vehicle as with a conventional PHEV.
EREVs are a subset of PHEVs, or arguably in their own segment, or even a subcategory of BEVs. For instance, under the EUās made-in-China tariffs, EREVs are lumped together with BEVs while conventional plug-ins are exempt from import levies.
The EU classification is also a nod to the huge popularity of EREVs in China and the competitive advantage enjoyed by the countryās first movers.
Almost entirely due to China, total global EREV battery capacity deployment surged by 115% year on year from January through October last year to 41.1 GWh, double the growth rate enjoyed by conventional PHEVs.
Not only do EREVs now constitute 35% of the plug-in market in GWh terms but four out of the top 10 PHEVs sold globally during the first 10 months of 2024 were madeāin-China EREVs, exemplified by the Fangchengbao Bao 5 (pictured) and Li Auto’s bestselling L6āL9 range.
Like many in its class, the AITO M7 sports a range that can extend to over 1,000 km (620 miles) without the need to refuel or recharge.
Bigger than BEV
During the first 10 months of 2024, the sales weighted average battery size of Chinese EREVs came in at a remarkable 39.3 kWh.
Thatās not only substantially larger than the average PHEV, but also more than the average battery powering a full electric mini car (i.e. A-Segment), such as the best-selling Hongguang MINI Macaron which is fitted with a 13.8 kWh power plant.
In fact, Adamas data shows that even battery packs in some B-Segment BEVs ā small cars like the BYD Seagull and the Hyundai Kona ā also average below those of EREVs.
Catch up
Ex-China OEMs are now scrambling to add EREVs to their lineup. Ford scrapped plans for a three-row full-electric SUV to replace it with an as yet unseen EREV that will arrive only in 2027 while Stellantis is pulling forward its on-sale dates for the Ramcharger EREV to early this year while postponing the launch of the BEV version of the popular pickup.
Hyundai told investors early last year that EREVs will play a big part in its future, teasing a flagship three-row SUV, the Ioniq 9, to be built in the US starting in 2026. Mercedes-Benz is also rumored to be considering an EREV option for its popular CLA-class sedans.
The concept is not new. BMW launched its i3 EREV hatchback as long ago as 2013 while the Chevrolet Volt EREV, which briefly had a Cadillac sibling, dates back to 2010.
Both models were discontinued years ago, but GM has since reversed course and announced that PHEVs are back on the release roster for some time this decade. Whether the new PHEV line-up will include EREVs has not been made explicit. Chances are high that they will.