Automakers are betting on a different kind of electric car. Meet the EREV.

The big new "it" engine is an EREV.

Will it outperform the PHEV? Scout Motors/Hyundai Motors/Business Insider New EREVs are coming to the market.

They're a new generation of electric vehicles that come with an onboard gas generator.

EREVs get EV performance and gas-car range — but will customers get confused and priced out? The next popular EV might come with a gas engine .

Several car brands, including Hyundai, Genesis, Ram, Jeep, Ford, and Volkswagen-backed Scout Motors, have announced plans to build extended-range electric vehicles, or EREVs, by the end of 2028.

It's a growing industry bet.

After years of lower-than-expected EV adoption , and as gas prices remain elevated , auto executives believe buyers want the experience of electric driving without having to depend on America's charging infrastructure for every long trip.

"EREVs are really the next generation of this stepping stone powertrain," Robby DeGraff, the manager of product and consumer insights at AutoPacific, told Business Insider.

"These vehicles make a lot of sense for a lot of Americans." So… what the heck is an EREV? A Scout Terra pickup truck.

Scout Motors An EREV has both a substantial battery and a gas engine.

Its wheels are propelled exclusively by electric motors.

The gas engine burns fuel to spin a generator, which produces electricity once the battery level falls.

On paper, the system combines the benefits of an EV and a gas vehicle.

Owners who charge regularly can handle most daily driving on electricity, then use gasoline for long trips or heavy towing — when an all-electric truck's range can take a steep hit.