Auto makers are thinking big with their plans for electric vehicles, focusing on sport-utility vehicles and pickup trucks to tap into consumers’ desire for larger rides.
A barrage of new plug-in hybrid and battery-electric SUV and truck models, including electrified versions of popular nameplates like the Jeep Wrangler and Ford F-150 pickup, are expected to hit U.S. dealerships in the next few years. General Motors Co. is even set to revive the Hummer nameplate—a onetime symbol of gas-guzzling excess—as an electric pickup truck sold under its GMC brand, people familiar with the plans say.
Auto executives say they are trying to better reflect consumer preferences, which in recent years have tilted heavily toward taller, more versatile vehicles such as pickups and SUVs. These models typically command higher profits than lower-margin sedans, helping manufacturers better absorb the still-expensive battery costs.
The shift to bigger vehicles is also being driven by improved EV technology, which is enabling car companies to build more powerful battery packs that can move larger vehicles and provide more travel range on a single charge.
“If you really want people to pay attention to electrics, you need to be playing where they’re interested,” said Darren Palmer, global product director for Ford Motor Co. ’s electrification efforts.
By 2022, shoppers will have 78 plug-in hybrid and battery-electric SUVs to choose from, up from 38 last year and just four in 2015, according to forecasts by AlixPartners, a global consulting firm. Analysts expect about a half-dozen battery-electric pickups to hit the market within the next two years.
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New sized-up offerings will range from plug-in hybrids—vehicles that can run on electricity but also have gasoline engines—to fully electric models.
European luxury brands like Audi and Jaguar are among those leading the way, unveiling new electric SUVs in the U.S. that have more than 200 miles of range in the past few years.
Ford this year will begin selling its battery-electric Mustang Mach-E SUV. Last month, it said it is investing $700 million to produce hybrid and electric versions of its F-150 pickup, the best-selling vehicle line in the U.S. for decades.
Also this year, Toyota Motor Corp. will roll out a plug-in version of its best-selling RAV4 compact SUV.
General Motors is retooling its plant in Detroit to build the new Hummer and other electric trucks and SUVs. Earlier this month, Fiat Chrysler Automobiles NV’s Jeep brand said it plans to have an electrified version of every model by 2022, with its first plug-in model for the U.S. market going on sale later this year.
Tesla Inc. is expanding its line with plans to start selling a new Model Y crossover in the U.S. later this year. Electric startup Rivian has focused its efforts on all-electric pickup trucks and SUVs.
For years, most car companies largely built electric vehicles as so-called compliance cars, or fuel-saving models that could help them meet stricter regulations on tailpipe emissions. Customers looking to buy an electrified model were mostly limited to smaller vehicles like the Chevrolet Bolt and Nissan Leaf.
Those offerings have failed to gain broader appeal, though, and sales of plug-in models accounted for only about 2.4% of the overall U.S. market last year, according to J.D. Power.
Christian Meunier, global president for the Jeep brand, said auto makers are realizing if they want to stimulate broader demand for these vehicles they are going to have to move beyond selling them only on environmental benefits.
“We can’t just rely on government subsidies and incentives. We need to be proactive,” Mr. Meunier said.
With the industry pledging more than $225 billion globally toward building more electric models by 2023, according to AlixPartners, car companies are eager to see a return and are looking to their reliable profit generators—SUVs and pickups—to provide it.
But there are risks, analysts say.
It still isn’t clear whether demand will materialize or if companies can sell enough vehicles to justify the costs, given that consumer appetite for electrified vehicles has been limited, said Brandon Mason, U.S. automotive director at PricewaterhouseCoopers LLP.
Electric and plug-in models are still far more expensive than gas-engine options, costing buyers anywhere from around $6,000 to $20,000 more, depending on range and vehicle type, according to the International Council on Clean Transportation. There are federal and state tax credits to narrow the price gap, but the difference is still substantial on many larger models, analysts say.
And people buy large SUVs and trucks for towing, but they may have to make compromises with an electrified model, because hauling is likely to deplete the vehicle’s range, said Brian Johnson, an auto analyst with Barclays.
And the models will likely have to deal with many of the same challenges electric cars have faced in the past, such as drivers with little electrified-car experience worrying about not finding a place to plug in or getting stranded without enough battery charge, Mr. Mason said.
“These are all hurdles that have to be overcome,” Mr. Mason said.
Write to Ben Foldy at Ben.Foldy@wsj.com
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Auto Makers See SUVs, Trucks Charging Electric-Vehicle Sales - Wall Street Journal
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