According to informed sources, Volkswagen AG (VWAGY.US) is evaluating the introduction of range-extended electric vehicles (EVs) in Europe and the US, as governments scale back EV subsidies and consumer concerns over inadequate charging infrastructure persist.

The German automaker is reportedly exploring the integration of range-extending systems into its popular SUV and sedan models. While this technology has gained traction in China, it remains relatively uncommon in Western markets. Volkswagen confirmed it is closely monitoring market trends and has reserved technical solutions for range-extended EVs in future vehicle platforms.

The company stated, "The adoption and timing of this technology in Europe and the US will depend on actual consumer demand." Volkswagen is currently finalizing its next five-year investment plan, with decisions expected following a supervisory board meeting later this week.

Originally, the EU planned to ban new internal combustion engine vehicles by 2035, but potential policy adjustments have prompted automakers to reassess their strategies. Due to slower-than-expected EV adoption in Europe, the EU has moved up its policy review to this month.

Range-extended EVs primarily rely on battery power, with a small onboard combustion engine serving solely as a generator to recharge the battery. This technology, refined by Chinese automakers, has drawn attention from European manufacturers. German officials have suggested including such systems in the EU’s post-2035 regulatory framework.

Other European automakers, including Stellantis (STLA.US) and BMW, are also evaluating the technology. Volkswagen has previously announced plans to introduce range-extended models in the US under its Scout brand, though it remains unclear whether core brands like Volkswagen and Audi will adopt the technology in Western markets. The company also confirmed plans to launch range-extended EVs in China next year.