Written by Cláudio Afonso | LinkedIn | X
Nio founder and CEO William Li reaffirmed the company’s commitment to fully electric vehicles, calling extended-range electric vehicles (EREVs) “clearly a transitional solution” that “made sense when battery costs were high.”
Speaking at a media event on Sunday, Li said that while range extenders had some appeal in the past, battery swap infrastructure and falling battery prices make pure electric vehicles (EVs) the better long-term solution.
EREVs, a subcategory of plug-in hybrids, are equipped with a small internal combustion engine that can charge the battery when needed, in addition to being charged via a cable.
Asked about the technology, Li defended Nio’s battery swap approach as the company aims to grow its network in China from 3,000 to 5,000 swap stations.
“We believe the logic still holds. In densely populated Chinese cities, a swappable, upgradable EV with charging and swapping capabilities is a reasonable choice,” he said, noting that “Range extenders can work with swap infrastructure.”
Nio has long argued that battery swapping provides greater flexibility and speed compared to traditional charging.
“[Battery] Swap is essentially a form of infrastructure, similar to charging stations and mobile power banks. Range extenders are clearly a transitional solution,” Li added, as initially reported by local media outlet 21Auto.
“The industry broadly agrees. Range extenders made sense when battery costs were high. As costs come down, their share will drop. We firmly believe that pure EVs are the ultimate solution.”
Average battery pack prices fell 20% in 2024 from a year earlier—the biggest annual drop since 2017—according to BloombergNEF. The cost fell to $115 per kilowatt-hour, driven by overcapacity in cell production, lower raw material prices, and a shift toward cheaper lithium iron phosphate batteries.
Chinese automakers delivered 623,000 EREVs in mainland China last year, a 173% increase from 2022, according to the China Association of Automobile Manufacturers.
Nio is preparing to launch nine new models across its three brands between April and December 2025, including refreshed and entirely new vehicles. A flagship model under the main Nio brand is planned for the fourth quarter.
“From product definition to cost targets, it is extremely competitive, and will incorporate our latest technologies. We are very confident we can return to center stage and gain sufficient market share in our segment,” Li said in a separate interview.
Rivals’s Approach
While Nio stays focused on pure EVs, rivals such as XPeng, and Zeekr are embracing extended-range technology. The Beijing-based Li Auto has been highly invested in them since its inception and it has delivered nearly 900,000 vehicles in 2023 and 2024 combined.
Li Auto, one of China’s leading new energy vehicle (NEV) startups, began with EREVs and launched its first fully electric model, the Li Mega, a year ago. The company plans to release its second battery-only model, the Li i8, in July. However, sales of the Li Mega have underperformed so far.
XPeng introduced its “Kunpeng Super Electric System” last year, promising up to 1,400 kilometers of combined range and 430 kilometers of pure electric range.
According to the local tech outlet 36Kr, the company is developing at least five range-extended models across different segments, including sedans and SUVs. The first model, based on the X9 platform, is scheduled for mass production in the second half of 2024. Additional models—codenamed E, F, and H—are set for release in 2026 and 2027 with both EREV and pure EV options.
Zeekr, a premium EV brand under Geely Holding, is also preparing to debut its first hybrid vehicle, the 9X Grand flagship SUV. Teaser images and videos were released ahead of its official unveiling at the Shanghai Auto Show in April, signaling Zeekr’s expanded focus on both EVs and plug-in hybrids.
Nio’s chief said separately that the company will no longer implement top-down layoffs, even as the company sharpens its focus on cost control amid widening losses and intensifying competition.
