IM Motors' first EREV model will be an SUV, which will be launched in the first quarter of 2025, according to local media.

The first extended-range electric vehicle (EREV) model from SAIC Motor Corp's electric vehicle (EV) unit IM Motors is reportedly set to be launched early next year and take on one of the most recognizable players in the segment.

IM Motors' first EREV model will be an SUV (sport utility vehicle), which will be released in the first quarter of 2025 and take on Li Auto's (NASDAQ: LI) Li L7, local media outlet 36kr said in a report yesterday, citing several people familiar with the matter.

IM Motors set up the EREV project in the second half of 2023, and the first product of the project will be an SUV, which the company hopes will gain market share quickly, the report said, citing a person familiar with the matter.

The five-seat Li L7 was launched in February 2023 and currently has a starting price of RMB 301,800 ($41,660). Prior to the roll out of the Li L6, the Li L7 was the Li Auto's lowest priced and mainstay of sales.

Most of China's earliest EV startups targeted the battery electric vehicle (BEV) market at the very beginning, but experience over the past few years has shown that plug-in hybrid electric vehicles (PHEVs), including EREVs, are now a popular choice in the electrification transition.

The most recognizable player in the EREV space is Li Auto, and its success, especially its significant growth throughout 2023, proves that EREVs are more accepted.

Neta Auto, Leapmotor are also offering EREVs, both of which initially offered only BEVs.

IM Motors is a joint venture between SAIC, Zhangjiang Hi-Tech and Alibaba, with SAIC holding a majority stake.

IM Motors' 5th model will feature extended-range technology, which will make up for the lack of fast charging and a short range of only 200 kilometers on battery power for the current average EREVs, the EV maker's co-CEO Liu Tao told local media in February this year.

IM Motors had unveiled a concept car called the Airo, which looks close to an MPV (Multi-Purpose Vehicle), Cheshi said in a February 22 report, adding that the company's fifth model is expected to be built on the Airo concept.

IM Motors currently sells all BEVs, including two sedans, the L6 and L7, and two SUVs, the LS6 and LS7. The L6 is its newest model, launched on May 13.

Liu had hinted at the possibility of building EREVs last year, mentioning in an interview with local media that EREVs would have market potential in the next 3-5 years, or even 5-8 years.

IM Motors' first EREV model will be based on SAIC's platform internally codenamed E1, which can accommodate larger battery packs and tandem architectures, 36kr's report said, citing a source close to IM Motors.

In China's increasingly competitive new energy vehicle (NEV) market, the EREV technology route has more room for imagination, the report said.

Last year, sales of EREVs in China reached 620,000 units, up 186 percent year-on-year, a triple-digit growth rate for the third consecutive year, the report noted.

As a comparison, PHEV sales grew at 87 percent, and BEVs at only 24 percent.

($1 = RMB 7.2451)

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