Toyota Is Reportedly Working On Range-Extender EVs

Toyota is the world’s largest automaker, and it has held that title by undertaking a diversified approach to electrification. It took Toyota a couple of years to release a range of electric vehicles (EVs) beyond its bZ4X electric crossover, and its EV lineup now includes the Highlander and the C-HR. Now, a report suggests that Toyota may be ready to dive into range-extender EVs.

As a recap, a range-extender EV, or extended-range EV (EREV), is a type of plug-in hybrid that combines a large battery with an internal combustion engine (ICE). But unlike a usual plug-in hybrid, the ICE in a range extender EV never powers the wheels. Its sole purpose is to act as a generator to charge the battery.

According to Nikkei, Toyota is planning to start EREV production in April 2027. The report didn’t state which EREV models are in the pipeline, nor did it reveal if it will be a model solely developed by Toyota or with a joint venture partner like GAC Motor.

At the moment, the GAC Aion V, which has a Toyota counterpart called the bZ3X, has an EREV version called the Aion i60. Whatever the case, don’t expect any of these EREVs to arrive in the Philippines anytime soon. Unsurprisingly, Toyota’s EREVs will be focused on China, the world’s largest EV market.

So why invest in EREV technology? Well, EREVs are suddenly picking up steam in China, where the appeal of having a long electric range that’s augmented by a gas-powered generator is gaining a lot of traction. Xiaomi, which only makes EVs, now has EREVs through its Skynomad lineup. EREVs usually have pure electric ranges well into the triple digits, while the ICE raises the total combined range to more than 1,000 kilometers. EREVs have gained traction in China, particularly in the crossover and SUV segment.

The same report states that Toyota aims to produce 200,000 EREVs in 2027 and then 400,000 by 2028. Most, if not all, will be destined for China. For reference, Toyota in 2025 sold nearly 200,000 EVs and 180,000 plug-in hybrids worldwide. Conventional hybrids still make up the lion’s share of its electrified vehicle sales, with 4.4 million units sold. Overall, Toyota sold 11.3 million vehicles last year.

Toyota’s decision to dive into EREVs is also driven by the removal of incentives for conventional hybrids, as well as intense competition in China’s automotive industry in general that is leading to price wars.

“Competition in China is intensifying as the market fixates on battery EVs, leading to price wars among automakers,” a Toyota executive said, per Nikkei. “We need to take steps to avoid being dragged into that competition.”