Executives from Chinese electric vehicle makers Li Auto and Nio have publicly disagreed over the future prospects of extended-range electric vehicles (EREVs), reflecting intensifying competition between rival technology approaches in China’s rapidly evolving new energy vehicle (NEV) market.
The debate emerged after Li Auto founder, chairman and chief executive Li Xiang defended the role of extended-range vehicles, while executives from Nio pointed to rising battery-electric vehicle (BEV) adoption as evidence that fully electric models are becoming the dominant force in the market.
Li Auto Defends Extended-Range Vehicles
In a post on Chinese social media platform Weibo on June 17, Li Xiang pushed back against claims that extended-range vehicles are losing relevance.
He argued that battery-electric and extended-range vehicles serve different customer needs and criticized efforts to portray one technology as superior to another.
“Some people have recently argued that extended-range EVs are losing share and have begun to talk down the entire market,” Li said.
He added that consumers continue to have diverse preferences, noting that more than 40% of vehicle buyers still choose conventional gasoline-powered models. In the premium five-seat SUV segment, he cited continued demand for internal combustion vehicles such as the BMW X5 and Mercedes-Benz GLE.
Li called for an end to what he described as attempts to create an “energy hierarchy” among different vehicle technologies.
Nio Highlights Growth of Battery-Electric Vehicles
The comments prompted an indirect response from Shen Fei, president of Nio’s Onvo brand, who defended the prospects of battery-electric vehicles.
In a Weibo post on June 18, Shen said he remained focused on expanding BEV sales in the second half of the year.
Citing industry data, he noted that China’s NEV penetration rate reached a record 62.9% in May. Within the NEV market, battery-electric vehicles accounted for 67% of sales, while extended-range vehicles represented 7%.
Shen described battery-electric vehicles as the market’s dominant trend and noted that a fully electric model had led sales in the large SUV segment for six consecutive months.
He also launched an online poll asking consumers whether they would prefer a battery-electric or extended-range powertrain when purchasing a large five-seat SUV.
Different Technology Strategies
The exchange reflects fundamentally different product strategies pursued by the two automakers.
Nio remains one of the few major Chinese manufacturers focused exclusively on battery-electric vehicles, while Li Auto built its success on extended-range technology, which combines an electric drivetrain with a small gasoline-powered generator used to recharge the battery.
Although Li Auto remains strongly associated with EREVs, the company has recently expanded into the battery-electric segment with models including the Li Mega multi-purpose vehicle and the newly launched Li i-series vehicles.
Market Data Shows Diverging Trends
Recent sales data from the China Passenger Car Association suggests battery-electric vehicles continue to gain market share.
Retail sales of extended-range vehicles in China totaled 85,000 units in May, down 28% from a year earlier, although they increased 11.2% from April.
Battery-electric vehicle sales reached 637,000 units during the month, representing a 3.9% year-on-year increase.
Overall NEV retail sales totaled 950,000 units in May, down 7.5% from the previous year, marking the fifth consecutive month of annual declines.
Pressure Mounts on Li Auto
The debate comes as Li Auto faces slowing demand for its core extended-range vehicle lineup.
The company delivered 33,350 vehicles in May, a decline of 18.4% from the same month last year.
Sales of its key EREV models—the Li L6, Li L7, Li L8 and Li L9—have experienced sustained year-on-year declines in recent months.
In response, the company is refreshing its product portfolio. An updated Li L9 was launched in May, while a redesigned five-seat version of the Li L8 is scheduled for release on June 23. An updated Li L6 is expected to follow in July.
Nio Gains Momentum in Premium SUV Segment
Nio, meanwhile, has reported strong demand for its large battery-electric SUVs.
The company’s ES8, which starts at 406,800 yuan ($60,194), delivered 11,475 units in May, surpassing 10,000 monthly deliveries for the seventh consecutive month.
Nio’s recently launched ES9, priced from 498,000 yuan, has also generated strong demand, with delivery wait times for higher-specification versions reportedly extending to 16 to 17 weeks.
The contrasting performance of the two companies highlights a broader debate within China’s automotive industry over whether consumers will increasingly favor fully electric vehicles as charging infrastructure improves, or continue to value the flexibility offered by extended-range technology.
Source: CnEVPost
