A recent study by Escalent highlights the potential of Extended Range Electric Vehicles (EREVs) as a viable stepping stone for consumers hesitant to transition fully to battery electric vehicles (BEVs). The report indicates that a significant portion of new-car buyers are unaware of EREVs and their benefits, specifically the capability to operate on both gasoline and electricity. This knowledge gap presents a challenge for automakers seeking to promote EREVs as an appealing alternative to traditional internal combustion engine vehicles. The study also emphasizes the need for clear consumer education on EREVs and suggests automakers redefine their messaging to better convey the versatility of this powertrain, potentially positioning it as a "plug-in hybrid without compromise." The research identifies a market opportunity for automakers to establish leadership in the EREV segment, similar to Toyota’s recognition in the hybrid space.

• Toyota Motor (TSE:7203) last closed at ¥2,902 up 0.1%.

In other trading, NIO (NYSE:NIO) was trading firmly up 10% and ending the day at $6.70. In the meantime, Anhui Jianghuai Automobile GroupLtd (SHSE:600418) lagged, down 6.3% to end the day at CN¥50.02. Two days ago, the company reported a half-year net loss of CNY 772.81 million, contrasting with a profit the previous year.

Toyota's strategic electrification push complements its expanding revenue streams amid market underpricing. Click to explore the full narrative on Toyota's growth potential.

To get in fast on the evolving EV landscape, revisit our Market Insights piece on the significant hurdles in the green energy transition.

Best EV Stocks

• Tesla (NasdaqGS:TSLA) closed at $351.67 up 1.5%.
• BYD (SEHK:1211) closed at HK$115.10 down 2.1%.

Seize The Opportunity

• Take a closer look at our EV Stocks list of 68 companies, such as Renault, HUAYU Automotive Systems and Great Wall Motor, by clicking here.
• Interested In Other Possibilities? AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "EREVs Could Serve as Stepping Stone to Electrification—if Consumers Know What They Are" from Escalent, Inc. on GlobeNewswire (published 26 August 2025)

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