Electric vehicles might be trending, but range-extended technology is currently the real game.
This shift has even driven automakers to set aside their differences and pursue both paths simultaneously.
For instance, Huawei recently announced a new pure electric vehicle, while XPeng unveiled its range-extending technology.
Thus, mastering both range-extended and pure electric technologies is the key to standing out.
However, the curious case is that even though XPeng has firmly committed, NIO remains hesitant, refusing to adopt range-extended technology.
Why is that? NIO has the technology and prestige but lacks significant sales volume. Range-extended vehicles could solve this issue. So, why isn't NIO going for it?
An industry insider offered a straightforward yet insightful explanation that makes perfect sense: NIO’s battery-swapping model conflicts with range-extending technology.
For other companies, adopting range-extending technology is an added bonus, but for NIO, it would only complicate matters.
After all, while other companies focus on charging, NIO has invested heavily in battery swapping.
If it were just a casual commitment, it wouldn't be a big deal, but NIO has essentially bet its future on battery swapping.
For instance, NIO's existing 2.500 battery swap stations are the result of eight years and a staggering 97 billion yuan investment.
With such commitment, it’s not an exaggeration to say NIO builds cars primarily to support battery swapping.
Not only does NIO itself focus on battery-swapping cars, but it also encourages other automakers to join in.
The idea is that if battery swapping becomes mainstream and every car adopts NIO’s stations, then NIO’s electric infrastructure becomes the backbone of the industry.
In essence, NIO aims to replace the “Big Two” oil giants.
Success isn’t guaranteed, but it’s clear that NIO is thinking big.
This makes battery swapping NIO’s core business.
Anything related to traditional fuel, such as range-extending systems, is rejected.
Recently, NIO's CEO, William Li, candidly stated, “If I had 15 billion yuan, I’d rather build battery swap stations than spend it on engines for range-extended vehicles.”
This makes it clear: as soon as NIO secures funding, it will continue to expand its battery-swapping network.
It’s not just that NIO refuses to make range-extended vehicles—it’s not even keen on pure electric models.
If it has to offer pure electric cars, it's only to promote its battery-swapping service; adopting range-extending technology would conflict with that strategy.
XPeng and other automakers don’t have this burden and can adopt range-extending technology without hesitation.
Range-Extending Technology Isn’t Easy to Perfect
This is where market logic comes in.
Anyone familiar with the industry knows that manufacturing is not the hard part; selling is the true challenge.
From a production standpoint, range-extended technology is simple.
Structurally, it's just an electric vehicle equipped with an “external battery pack”—an internal combustion engine system.
Reusing an electric vehicle platform saves considerable R&D costs.
More importantly, since the battery size is smaller, it allows for simpler technology.
For example, while electric vehicles often use a full 800V system, a range-extended vehicle can suffice with 400V.
This allows for significantly reduced costs.
While it seems straightforward, it’s a mistake to think it’s easy to succeed.
The market phase is where the real challenges arise.
Take Chery, for example: it has resources, a solid reputation, and advanced technology.
With these conditions, one would expect Chery to dominate with range-extending technology. But reality proved otherwise; it couldn't compete with Li Auto.
In October, for instance, Li Auto sold 51.500 units, while Chery’s Xingji ET sold only 230 units.
Not only is Chery struggling, but Changan is also facing challenges.
Several other car companies are preparing to enter the range-extending competition.
In this situation, while it can't be said that NIO has no chance, it’s hard to say it will stand out.
XPeng's Strength in Intelligent Driving Makes It Suitable for Range-Extending
Simply put, XPeng’s focus on pure electric vehicles has been a misstep; adopting range-extending technology is the right move.
A glance at the current market reveals why.
Successful high-end electric vehicles, apart from NIO’s battery-swapping strategy, are all about high performance.
For example, Xiaomi’s SU7 is setting records at the Nürburgring, and Zeekr’s 001 is making waves at Zhejiang Circuit.
In other words, strong performance allows for higher energy consumption and less impressive autonomous driving features to be more acceptable.
XPeng, however, takes the opposite approach.
Despite having excellent autonomous driving capabilities and low energy consumption, it struggles with performance.
This has caused its high-end electric vehicle strategy to falter.
Although there have been recent improvements, it’s only through the Mona model, which is more of a budget commuter car.
With range-extending technology, XPeng can enhance its offerings.
As previously mentioned, while developing range-extending technology is easy, selling it is not.
Why? Because many automakers don’t understand that range-extending success hinges on autonomous driving and range.
Current range-extended vehicles only reach about 200 km on electric mode.
However, XPeng’s announced technology boasts a range of 430 km.
When it comes to intelligent driving, only AITO can compete with XPeng.
With these strengths, not adopting range-extending technology would be a waste.
NIO’s only selling point remains its battery-swapping model, which doesn’t translate into success with range-extended vehicles.
In Conclusion
Range-extending technology is simple. NIO’s reluctance isn’t due to lack of capability but rather choice.
Battery swapping is NIO’s priority. Even pure electric vehicles take a back seat, let alone range-extending technology.
XPeng doesn’t have such limitations and can pivot strategies as needed.
Moreover, XPeng’s technology favors range-extending vehicles. While its electric vehicle performance isn’t subpar, it’s also not outstanding.
This suggests that in the next 2-3 years, XPeng will likely focus on range-extending technology with great enthusiasm.
