In the context of the rapid development of the new energy vehicle industry, the extended-range electric vehicle (EREV) is attracting more and more attention from car companies as a transitional technical route between pure electric and plug-in hybrid. On March 26, 2025, Chen Yonghai, vice president of Xpeng Motors, sparked heated discussions in the industry about the planning of extended-range models, which is not only related to the future product matrix layout of Xpeng, but also reflects the strategic thinking of Chinese new energy vehicle companies in the selection of technical routes. China Exportsemi will deeply analyze the opportunities and challenges of Xpeng Motors' layout of the extended range track from multiple dimensions such as technical thresholds, market positioning, and competition pattern.
Analysis of Range Extension Technology: Threshold and Breakthrough
Chen Yonghai's view that "the technical threshold for range extension is not high" needs to be viewed dialectically from the technical level. Structurally, extended-range electric vehicles do have one more fuel power generation system than pure electric vehicles, but one less mechanical drivetrain than plug-in hybrid models. This "tandem" structure does theoretically simplify the power transmission path, but this does not mean that the technical threshold is lowered.
Xpeng Motors' Kunpeng super electric system released in November 2024 showcases its technology accumulation in the field of range extension. The system is based on a global 800V high-voltage silicon carbide platform and integrates a number of innovative technologies:
- 5C supercharging AI battery system, support 80% charging in 15 minutes
- Hybrid silicon carbide coaxial electric drive system with an efficiency increase of 96.5%
- The third-generation silent range extender, NVH control is at the industry-leading level
- AI battery health management system to extend battery life by 30%
According to the test data of the Ministry of Industry and Information Technology, the pure electric range of the extended-range model under this platform can reach 430 kilometers (CLTC working condition), the comprehensive range exceeds 1,400 kilometers, and the fuel consumption of the feed is controlled at 5.8L/100km. These technical indicators show that Xpeng did not simply "copy" the existing range extension scheme, but achieved a technological breakthrough through electrification architecture innovation.
Picture: Xiaopeng Chen Yongmei talked about the low threshold of range extension technology on Weibo
Market Strategy: The business logic of timing
Xpeng Motors' choice to lay out the range extension market in 2025 has a well-thought-out business consideration. From the market data:
- In 2024, China's sales of extended-range models will reach 782,000 units, a year-on-year increase of 145%, accounting for 12.3% of the new energy market
- The penetration rate of range-extender models in non-restricted cities reached 18.7%, significantly higher than that of pure electric vehicles (9.2%)
- According to user surveys, 72% of range extender owners have home charging conditions, but 58% still have range anxiety
After completing the organizational structure adjustment, Xpeng Motors has achieved a rebound in sales through the MONA series. The 2024 financial report shows:
- Delivered 191,000 vehicles for the year, including 91,500 units in Q4, a record high
- Gross profit margin recovered to 11.2% and cash reserves reached $45.3 billion
- R&D investment remained at a high level of 12.7%.
This financial situation provides financial security for technological diversification. At the same time, Xpeng's channel sinking strategy has achieved initial results, with the coverage rate of third-tier cities reaching 65%, laying the foundation for the promotion of extended-range models.
Competitive landscape: the way to break the game with differentiation
The current range extension market presents a pattern of "one super and many strong":
- Li Auto has a 43.7% market share, with annual sales of more than 340,000 units
- Wenjie and Deep Blue ranked second and third with a share of 18.2% and 12.5% respectively
- Traditional automakers such as Geely and Great Wall are accelerating their deployment, and 12 new models are expected to be launched in 2025
In order to achieve differentiated competition, Xpeng must make breakthroughs in the following aspects:
1. Technological differentiation: Leverage the advantages of the 800V platform to develop a range extender system that supports ultra-fast charging
2. Scenario differentiation: Develop a smart camping mode for young family users to expand car use scenarios
3. Cost control: Through the platformization of the electric drive system, the price of the extended range model will be reduced to the range of 18-250,000 yuan
It is worth noting that Xpeng's accumulation in the field of intelligence may become a key competitive advantage. Its XNGP intelligent driving system has achieved high-speed NOA coverage across the country, and urban NOA has landed in 56 cities, and the combination of these functions and the range extension system will create a unique selling point.
Technical challenges and supply chain risks
Despite its promising prospects, Xpeng still faces multiple challenges in developing its range extender technology:
1. Difficulty of technical integration:
- Cooperative control of range extenders and electric drive systems requires the redevelopment of the vehicle controller (VCU)
- Thermal management systems are becoming more complex, balancing the cooling needs of batteries, motors, and range extenders
- Increased NVH control standards, especially vibration suppression at range extender start-up
2. Supply Chain Risk:
- High-performance range extenders rely on international suppliers such as AVL and FEV, with a localization rate of less than 40%
- Silicon carbide power devices are affected by geopolitics and there is a risk of supply interruption
- Lithium resource price fluctuations affect battery cost control
3. Capacity ramp-up pressure:
Xpeng's Wuhan plant plans to have an annual production capacity of 100,000 units, but it needs to produce both pure electric vehicles and extended-range models, and its flexible manufacturing capabilities are being tested. Industry data shows that the capacity utilization rate of new models in the initial stage of mass production is usually less than 60%, which poses a challenge to cost control.
Policy environment and long-term trends
At the policy level, the revised version of the "Measures for the Parallel Management of Corporate Average Fuel Consumption of Passenger Cars and New Energy Vehicle Credits" implemented in 2025 puts forward higher requirements for extended-range models:
- A pure electric range of ≥ 200km is required to earn 2 new energy credits
- The fuel consumption factor of the feed has been adjusted from 0.5 to 0.7, and the technical threshold has been raised
- New carbon footprint accounting requirements have been added, and life-cycle emissions have been included in the assessment
In the long run, with the construction of supercharging networks and the advancement of battery technology, the industry has disagreements on the life cycle of range extension technology:
- Optimistic forecast: the range extension market will maintain a growth rate of more than 15% until 2030
- Conservative view: the share of range extension will start to decline after 2028
- Third-party organizations predict that the compound growth rate of extended-range models from 2025 to 2030 will be about 12.3%.
Strategic advice and development paths
Based on the above analysis, in order to achieve the success of the range extension strategy, Xpeng Motors recommends the following strategies:
1. Technical route:
- Develop a modular range extender platform to support dual-mode production of pure electric and extended range vehicles
- Focus on breakthroughs in high-efficiency range extender technology, with a target thermal efficiency of ≥42%
- Develop an intelligent energy management system to optimize battery life in scenarios
2. Product Planning:
- The first extended-range model is positioned as a mid-size SUV and cuts into the mainstream price range
- Launched MPV models in the future to improve the product matrix
- Explore the use of range extender technology in innovative products such as flying cars
3. Ecological Construction:
- Cooperate with Sinopec and others to build an integrated oil and power energy station
- Develop V2G technology to improve the grid interaction capability of range-extender vehicles
- Build a charging and discharging service ecosystem to expand business value
He Xiaopeng, chairman of Xpeng Motors, once said: "In the next five years, diversified power routes will be the mainstream choice of smart electric vehicles. "This judgment is being validated by the market. In the period of industry change with rapid technology iteration, Xpeng not only needs to grasp the current market opportunities for range extension, but also needs to make technical reserves for the full arrival of the pure electric era. Only by adhering to long-termism can we continue to maintain a leading edge in the fierce market competition.
Conclusion
The value of range extender technology as a transition solution should not be underestimated, but it should not be over-relied on either. Xpeng Motors needs to balance short-term market gains with long-term technology investment, and prudently promote its range extension strategy while maintaining its leading position in pure electric technology. The choice of the technical route is essentially a double test of the company's strategic determination and market acumen.
