Electrified vs New Energy Vehicles


EDITORS DESK

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With the growing popularity of electrified vehicles these days, it’s easy to get confused with all the new terminology being thrown our way. No doubt you’ve already heard some of them like hybrid, new energy vehicle, electrified, or even range-extended /extended range electric vehicle (REEV/EREV).

There are subtle differences between these terms, and some may not even be as intuitive as their names suggest. We’ll dive into why it’s important to learn the difference between these terms and why they aren’t necessarily interchangeable.

Electrified vehicle

Chances are, you already know what an electrified vehicle is. This is a vehicle that derives part or all of its power from an electric source. Electrified vehicle is a blanket term for any vehicle with a partly- or fully-electric power source.

As such, this serves as an umbrella term for vehicles like battery electric vehicles (BEV) which rely fully on electric power, hybrid electric vehicles (HEV) which rely on both a battery and gasoline engine to propel the vehicle, and even unique vehicles like hydrogen fuel cell electric vehicles (FCEV) which derive power from the process of combining hydrogen and oxygen to produce electricity and only emit oxygen and water vapor. So long as there’s a battery involved, whether it’s charged by plugging in to the grid, by an onboard engine or electricity producer, or both, it’s an electrified vehicle.

Hybrid vehicles

This second kind slots right under electrified vehicles and refers to vehicles that use both gasoline engines and a battery to produce power. They may use both in combination or independently. Hybrids range from hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (batteries are charged by the engine or grid [PHEV]) and even range-extended / extended-range electric vehicle (REEV/EREV), which are basically PHEVs too.

New energy vehicle

New energy vehicles (NEVs) may be the most confusing term among them. After all, by the name itself, you’d think this could be any vehicle powered by a non-petrol (new energy) source. As such, it would be logical to include battery electric vehicles, ethanol alcohol-powered vehicles, biodiesels, natural gas-powered vehicles, and even hydrogen or synthetic gasoline-powered vehicles. Unfortunately, this couldn’t be farther from the truth.

New Energy Vehicle is actually a term coined by the Chinese government as part of its efforts to steer local research and development toward electrified vehicles. The Chinese government initially selected NEVs to be one of their emerging strategic industries in 2010.

It released the Energy-saving and NEV Industry Development Plan in 2012. The policy called for high production and sales targets particularly for BEVs and PHEVs to create economies of scale and foster domestic manufacture. Local carmakers that participated benefited from subsidies while buyers enjoyed subsidies and tax rebates when purchasing these vehicles. The term includes BEVs, PHEVs, and FCEVs while excluding hybrid electric vehicles (HEVs) because this is where Japanese manufacturers had the lead. As such, the policy was conceived to bolster local manufacturers while preventing foreign carmakers in similar fields from enjoying the same advantages. It’s the reason why Chinese carmakers have seemingly overtaken the world overnight when it comes to producing EVs and EV-related technology.

Why the distinction?

Knowing this difference is important because, as more and more Chinese carmakers are entering our market, we’re hearing the term, NEV, being used more frequently. More and more people are adopting the term without understanding the critical exclusion.

Adding even more confusion is the marketing and promotions of one particular brand that touts itself as the country’s “leader in NEVs.” Based on the Chinese definition (which excludes regular hybrids [HEVs]), there’s truth to their claim. However, in the Philippine context, where most buyers might presume that HEVs are included in the NEV classification, this may be a bit misleading.

After all, when one includes all kinds of electrified vehicles (especially regular hybrids without a plug [HEV]), there is still only one clear leader: Toyota. With just two out of seven of its hybrid models (the Corolla Cross and Yaris Cross), the sales figures already easily outnumber this one brand’s total sales (BEV and PHEV combined).

Granted, this new brand can still claim to be the country’s BEV or PHEV leader. However, before they claim to be the New Energy Vehicle leader, perhaps it’s first best to explain to the public precisely what NEV means. I didn’t see a little asterisk or fine print in any of these promotional materials.