Shanghai Auto Show 2025 Highlights REEV Powertrain Expansion

China has become a growing market for this technology, with automakers like BYD, Changan, Chery, Dongfeng, Geely, Huawei and Leapmotor leading the way. One factor driving REEV adoption is the added flexibility they offer for vehicle platforms originally designed for battery electric powertrains.

Along with PHEVs, REEVs offer consumers greater flexibility in charging and refueling, serving as a bridge between conventional ICE vehicles and BEVs. According to S&P Global Mobility’s latest light vehicle powertrain production forecast, the manufacture of light vehicles with REEVs in Greater China surged to almost 1.233 million units during 2024, representing a 4.1% share of light vehicle production that year.

S&P Global Mobility forecasts that Greater China will remain the largest production hub for REEVs over the coming years. We expect this powertrain type to make up a 5% share of light-vehicle production in the region in 2025, rising to 8.7% in 2027 and 10.2% in 2030.

This growth will be driven by the continued expansion of China’s broader new energy vehicle market, along with increasing exports to global markets. The rise of REEVs will also align with the introduction of China’s fuel economy regulations. 

Given this context, it’s no surprise that REEVs emerged as a prominent trend at Auto Shanghai 2025. Several automakers announced plans to broaden their portfolios with REEV models or indicated intentions to introduce them. We project that the global share of REEV production will grow as production expands across various regions, driven by an increasing number of brands and models.

Notably, Mazda showcased its EZ-60 mid-size crossover, which will be available as an REEV and a BEV, leveraging a platform sourced from its local partner, Changan.

Another key player, Volkswagen (VW) Group, unveiled the VW ID.ERA concept at the event. This full-size three-row SUV, slated for production by the SAIC-VW joint venture in China, will be the first VW model with an REEV powertrain. It is expected to offer up to 300 km of all-electric range and more than 1,000 km of total range with an ICE acting as a generator.

At the event, senior VW Group executives indicated that REEV technology could soon appear in products across other key regions. The company has already outlined plans to incorporate a REEV powertrain in its US-based start-up full-size truck and SUV brand, Scout Motors.

Martin Sander, member of the VW Brand Board of Management, noted that the technology is also set to debut in Europe, although it will be developed independently, without input from the company’s Chinese joint venture. 

S&P Global Mobility forecasts that at the end of 2024, global REEV light-vehicle production reached 1.238 million units, the majority of which were built in Greater China for this regional market. However, REEVs only represented a 1.38% share of global light-vehicle output during the same year.

In contrast, PHEVs made up slightly more than 6% of global light vehicle production during 2024, and BEVs 12.9%.

In North America, REEV production will begin in 2025 with the launch of the Ram 1500 Ramcharger pickup, which will complement the battery electric variant, the REV.

We expect rival products to follow from GM and Ford, along with entries into the full-size SUV space, including the Scout products. The rise of REEVs may partially mitigate the slower push toward BEVs expected under US President Donald Trump.

S&P Global Mobility forecasts that REEV production in North America will increase from a 0.1% share of light-vehicle output in 2025 to 0.9% in 2028, before reaching 3.2% in 2030 and 3.8% in 2032.

In Europe, while initial REEV production volumes are expected to be limited, there is potential for growth. In the near term, REEVs are forecast to reach only a 0.3% share of European output in 2029, up from 0.01% in 2024.

However, beyond 2030, S&P Global Mobility predicts that evolving regulatory conditions could make REEVs more attractive, potentially opening the door for key automakers like Ford, Renault, Stellantis and the VW Group to produce these vehicles.

Certainly, a shift in the regulatory landscape is something the VW Group hopes will drive REEV adoption. VW Group CEO Oliver Blume told journalists during Auto Shanghai that the EU might be persuaded to permit the sale of REEVs beyond the 2035 ICE phase-out deadline, as most REEVs are built on battery electric—rather than ICE-based—platforms.

For now, S&P Global Mobility forecasts that REEV production in the region will reach almost a 1.5% share of European output in 2032, and 2.5% during 2034.