Why can’t PHEVs have a higher electric range?
They could, but they wouldn’t be as cost-effective. Most people drive less than 40 miles a day (see chart), and paying for range that is infrequently used adds to the cost without significant fuel savings. Pure Battery Electric Vehicles (BEVs) have ranges up to 250 miles, but large battery packs are expensive (though declining in price each year), so when the gas tank is present it makes sense to use it. For electricity the fuel is cheap but the tank (the battery pack) is expensive. For gasoline the fuel is expensive but the tank is cheap. PHEVs combine the best of these by using electricity for your everyday driving, and using gasoline for the less common long trips.