Core Insights - The rise of range-extended electric vehicles (REEVs) has led to increased competition among automakers, particularly in the mid-to-large SUV segment, which is nearing market saturation with slowing sales growth [3][4] - The development of REEV technology must diversify beyond mid-to-large SUVs to avoid market homogenization and promote innovation [4][6] Market Dynamics - REEVs are primarily concentrated in the mid-to-large SUV market, with many automakers investing heavily in this segment, leading to a near-saturation of market capacity and a noticeable slowdown in sales growth [3] - The success of China's REEV technology is attributed to its focus on high-income family needs, offering versatility for commuting and leisure, which aligns with the trend of consumer upgrading towards functionality and quality [5][6] Technical Recommendations - For A-segment vehicles, a configuration of a large battery combined with a small range extender is recommended to reduce costs while maintaining performance [6] - The proposed configuration of a 30kW engine with a 30kWh battery can lower costs by approximately 4,000 yuan compared to larger configurations, while still addressing range anxiety [6] Innovation and Development - The industry must redefine REEV technology by accurately identifying product needs and focusing on user experience-driven innovations [7][10] - Innovations in combustion technology, noise, vibration, and harshness (NVH), manufacturing processes, and AI-driven control systems are essential for advancing REEV technology [8][9][10]