LIVONIA, Mich., Aug. 26, 2025 (GLOBE NEWSWIRE) — While not all consumers are ready for a battery electric vehicle (BEV), other electrified powertrains have emerged as a potential solution for many new-car buyers as they seek a middle ground between internal combustion engine (ICE) vehicles and BEVs. Extended range electric vehicles (EREVs), in particular, offer buyers many of the benefits of BEVs along with the option to run on either gas or electricity, yet more than 40% of new-car buyers have no idea what they are.
This is according to Escalent’s 2025 Non-BEV Alternative Powertrain DeepDive from EVForward®, the largest, most comprehensive study of the next generation of EV buyers. The report explores new-car buyers’ views on hybrids (HEVs), plug-in hybrids (PHEVs) and EREVs to understand the role these powertrains play in the path to vehicle electrification.
“While EREVs are ideal for drivers looking for the cost-saving and environmental benefits of BEVs with the familiarity and ubiquity of the gas pump, there is a significant disconnect with how automakers define the powertrain and how consumers understand and perceive its benefits,” said Ben Lundin, an insights director in Escalent’s Automotive & Mobility practice. “Consumers are confused by the name itself and the industry’s lack of consistent terminology only makes it harder to understand the powertrain’s value proposition—preventing it from gaining traction in the market.”
When no definition is provided, new-car buyers are quite misinformed about what EREVs are and how they operate in comparison to other powertrain models. For example, only 6% think EREVs can run “only on gas,” whereas more than half (55%) think they can run “only on electricity.” These data indicate consumers believe EREVs are synonymous with electricity, likely conflating them as one and the same with fully-electric vehicles. However, consumers’ views start to change once provided with a clear definition of EREVs. Opinion of the powertrain was boosted in the minds of most consumers, growing from 58 to 61 on a 0-to-100 scale, after consumers learn of the powertrain’s association with gas.
“For automakers, this initial misunderstanding is a significant hurdle that needs to be overcome to capitalize on the market opportunity,” continued Lundin. “Automakers that choose to use ‘EREV’ in describing their powertrains must reframe their messaging and actively explain that the powertrain also allows for refueling with gas. Alternately, EREVs could be described as ‘PHEV without compromise,’ leaning into buyers’ understanding that PHEVs offer the ability to run on electricity or gasoline.”
In analyzing the current brand landscape, Escalent found both Toyota and Tesla benefit most from being strongly associated with alternative powertrains. Toyota’s long-standing leadership in hybrids has created a halo effect, leading it to rank first in consumer consideration for all alternative powertrain models. Similarly, Tesla’s synonymous relationship with electric vehicles results in it being considered first alongside Toyota for BEVs and even in garnering strong consideration for other electrified powertrains that Tesla doesn’t currently produce.
“No single automaker has yet established itself as a leader in the EREV market the way Toyota has with hybrids, presenting a major opportunity for brands to cement themselves as the go-to for this powertrain. If a brand is able to successfully do this, they could similarly attain a halo effect that drives consumer consideration for all of its alternative powertrains,” said K.C. Boyce, a vice president in the Automotive & Mobility and Energy industry practices at Escalent. “To achieve this, automakers must first understand which vehicle segments and consumer groups are the best fit for the EREV powertrain. From there, automakers can invest in production flexibility, allowing them to adjust to shifts in consumer demand over time.”
To learn more about Escalent’s EVForward research, visit escalent.co.
About the EVForward®Non-BEV Alternative Powertrain DeepDive study
This EVForward® DeepDive was conducted among a national sample of 1,104 respondents—with 93 EV Owners, 291 EV Intenders, 343 EV Open and 377 EV Resistant respondents as identified by Escalent’s algorithm—from February 7 to February 26, 2025. These respondents are a subset of the EVForward database, a global sample of more than 50,000 new-vehicle buyers age 18 to 80, weighted by age, gender, race and location to match the demographics of the new-vehicle buyer population and by vehicle segment to match current vehicle sales. The sample for this research comes from an opt-in online panel. As such, any reported margins of error or significance tests are estimated and rely on the same statistical assumptions as data collected from a random probability sample. Escalent will supply the exact wording of any survey question upon request.
About Escalent
Escalent is an award-winning data analytics and advisory firm specializing in industries facing disruption and business transformation. As catalysts of progress for more than 40 years, we accelerate growth by creating a seamless flow between primary, secondary, syndicated, and internal business data, providing consulting and advisory services from insights through implementation. We are 1,600 team members strong, following the acquisition of C Space and Hall & Partners in April 2023. Escalent is headquartered in Livonia, Michigan, with locations across the US and in Australia, Canada, China, India, Ireland, the Philippines, Singapore, South Africa, UAE and the UK. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.
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