The Chinese electric vehicle market is undergoing a shift: the popularity of extended-range electric vehicles (EREV), where the internal combustion engine is used only as a generator, has been declining for the third consecutive month. According to Autohome, EREV sales fell by 7-13% year-on-year in July-September 2025. The decline is especially noticeable for Li Auto, the brand that first made this format mainstream.
The reasons are obvious: new-generation electric vehicles have received a range of more than 500 km, and some models have more than 700 km. At the same time, the network of charging stations in China is growing rapidly: by the end of 2024, their number reached 12.82 million, an increase of almost 50%. A decrease in the cost of batteries to $99 per kWh makes fully electric models more economically advantageous.
In response, manufacturers are changing their approach - new EREVs are equipped with larger batteries and smaller fuel tanks. For example, the IM LS6 with a 66 kWh battery travels up to 450 km on electric power, and the Leapmotor D19 with 80 kWh - about 500 km. However, some experts consider this strategy unjustified: excess capacity increases the cost without tangible benefits.
As the charging infrastructure develops and batteries become cheaper, EREVs are losing their key advantage - the absence of "range anxiety". In the future, such models may remain a niche choice for regions with limited access to charging, while the mass market will switch to fully electric vehicles.