The Extended-Range EV Segment Enters Fierce Red Ocean Competition

[Market Landscape] Joint venture brands are flooding in, shifting the extended-range vehicle market from a blue ocean to a red ocean.

Key Development: Dominance by Domestic Brands Disrupted

Domestic brands such as Li Auto, Leapmotor, and Aito previously dominated the extended-range market by establishing three distinct price tiers—around RMB 200,000, RMB 300,000, and over RMB 400,000—through precise positioning. However, joint ventures like Volkswagen have recently launched multiple extended-range models in quick succession, intensifying competition across the segment.

Key Statistic: Sales to Surpass 1.23 Million Units in 2025

The extended-range electric vehicle market is projected to achieve sales of 1.23 million units in 2025, demonstrating strong growth momentum and attracting numerous new entrants.

Industry Impact: Technology and Cost Efficiency Emerge as Decisive Factors

As competition heats up, automakers must build new competitive moats through iterative advancements in extended-range technology, cost control, and user ecosystem development to survive the elimination phase of the market’s next stage.