Volkswagen could be revving up to add extended-range electric vehicles (EREVs) to its lineup, becoming one of the latest automakers to turn to alternative powertrains amid slowing demand for EVs.
The details: VW is considering range-extended sedans and crossovers in both Europe and the U.S. as part of a new five-year investment plan to be announced in March, per Bloomberg—though very few details of the strategy are known at this point.
The automaker said it’s “monitoring market developments and has reserved the range extender concept for its future EV platform,” according to a company spokesperson.
VW added that consumer demand will determine the timeline and market for the long-range electric vehicles.
Why it matters: For dealers, a potential VW move into EREVs would mean another option for shoppers who like the idea of electric but still worry about range or charging, especially in larger vehicles. That could broaden the pool of EV-considering customers, but it will also require clear showroom education on how range extenders differ from hybrids, plug-in hybrids, and traditional BEVs, as well as new service and training considerations.
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Between the lines: News of Volkswagen’s plans to launch extended-range EVs follows similar moves by several other automakers aiming to revamp their electric vehicle strategies with longer-range EVs, which add a gas engine to an EV platform to recharge the battery and offer additional range.
Scout Motors is making the longer-range electric vehicles a central part of its launch strategy for the Scout Terra pickup and Traveler SUV, scheduled to debut in 2026.
Stellantis $STLA ( ▲ 0.76% ) plans to launch an extended-range version of the Jeep Grand Wagoneer and Ram 1500 in early 2026.
Hyundai will introduce range-extender vehicles as well, focusing on larger vehicles, which seems to be the segment most automakers are focused on with the longer range EVs.
What they’re saying: "We see them more useful for larger vehicles, because basically, you remove your range anxiety, and then you can, you can get [the] longer distances which are driven by the American consumer," said Hyundai Motor Company CEO José Muñoz (via) Inside EVs.
Bottom line: As more brands experiment with EREVs, dealers should be ready to position these vehicles as a bridge between ICE and full EV—especially for truck and SUV buyers—while staying on top of OEM rollout plans, training staff on the technology, and aligning inventory and marketing to match local charging realities and customer needs.
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