The next popular EV could be that come with a gas engine.
Several auto brands, including Hyundai, Genesis, Ram, Jeep, Ford and Volkswagen-backed Scout Motors, have announced plans to build extended-range electric vehicles (EREVs) by the end of 2028.
It’s a growing gamble within the industry. After years of lower than expected EV adoptionand if gas prices remain highDrivers believe buyers want the experience of electric driving without having to rely on U.S. charging infrastructure for every long trip.
“EREVs are really the next generation of this entry-level powertrain,” Robby DeGraff, product and consumer insights manager at AutoPacific, told Business Insider. “These vehicles make a lot of sense to many Americans.”
So…what the heck is an EREV?
A Scout Terra pickup. Scout engines
An EREV has both a large battery and a gas engine.
The wheels are driven exclusively by electric motors. The gas engine burns fuel to run a generator, which produces electricity once the battery level drops.
On paper, the system combines the advantages of an electric car and a petrol car. Owners who charge regularly can handle most daily trips on electricity, then use gasoline for long trips or heavy towing – while the range of a fully electric truck can be significant. Most EREVs are expected to be able to travel approximately 120 to 150 miles on electric power alone, followed by several hundred additional miles on a full tank of gasoline.
The size makes particular sense in the kinds of vehicles Americans already love: large trucks and SUVs. The fully plug-in EREVs announced so far are concentrated in those larger segments, where there is room for a large battery, an engine and a fuel tank.
“Given that Americans still have an irrational desire for oversized vehicles and we’ll likely continue to see higher fuel prices for the foreseeable future, EREVs actually make a lot of sense and have the potential to do well,” Sam Abuelsamid, vice president of market research at Telemetry, told Business Insider.
What’s coming, and when
A Ram 1500 REV. Stellantis
Automakers haven’t settled on a single name for the technology.
Ram’s upcoming pickup is the clearest example. The company calls its gas-generator, electric-powered truck the Ram 1500 REV. Ram says the pickup, which is expected to hit dealerships in the first half of 2027, will produce 647 horsepower from electric motors, have an electric range of 140 miles and can travel up to 620 miles in total.
Its sister brand, Jeep, is preparing a related Grand Wagoneer SUV. It’s called the REEV.
Hyundai, Ford and Scout Motors are firmly in the EREV camp. Up recent investor day, Hyundai announced that it will build a three-row Santa Fe EREV in Alabama. Launch is expected in early 2027 and will have a range of more than 900 kilometers. The company’s luxury brand, Genesis, will also introduce an as-yet-unnamed EREV SUV.
Ford has announced that its next generation F-150 Lightning will next get a gas generator Sales of the fully electric version were disappointing. Finally, Scout Motors, the vintage truck brand that Volkswagen is reviving is offering gas generator options for its Traveler SUV and Terra pickup.
Nissan’s upcoming Rogue e-POWER hybrid points in the same direction. It’s not a plug-in and Nissan doesn’t call it EREV. But just like an EREV, the gas engine generates electricity, while electric motors drive the wheels.
They are different from other big flops
Automakers have tried to find a middle ground between historically popular gasoline cars and electric cars. They haven’t really worked yet. Adam J. Dewey/Anadolu Agency via Getty Images
The promise of an EREV may sound familiar.
For years, car companies pitched plug-in hybrids, or PHEVs, as the best of both worlds: a plug-in battery for short trips and a gasoline engine for longer trips.
The category has not caught on.
The Energy Information Administration reported that plug-in hybrids accounted for 1.4% of U.S. auto sales in the second quarter of 2026, up from 1.9% a year earlier. Stellantis announced one Write-off of $26 billion while it is discontinuing its PHEV range, and none of Detroit’s Big Three automakers still sell a traditional plug-in hybrid in the US.
A few PHEVs have found an audience. Toyota has sold quite a few plug-in Priuses and RAV4s, while Mitsubishi’s Outlander Plug-In Hybrid has received good reviews. DeGraff said he gets an estimated electric range of 45 to 55 miles with a 2026 Outlander PHEV he is currently testing.
But overall, the PHEV model has struggled on a large scale. The vehicles are more expensive than comparable gasoline cars and traditional hybrids, and their promise of fuel savings depends on owners plugging them in regularly. Studies have found that many don’t.
Abuelsamid says EREVs could be a better choice for two main reasons: they are mechanically simpler and, unlike PHEVs, performance won’t change as the car moves back and forth between gasoline and electricity.
Or EREVs could fall into the same pricing and consumer confusion traps. The Ram 1500 REV, for example, is expected to hit dealerships priced between $60,000 and $100,000.
“There are two huge threats to EREVs that have been detrimental to current PHEVs: cost and education,” DeGraff added. “If you want a consumer to pay a lot more for this advanced powertrain, it’s critical that he or she understands this.”
