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EV Mode is when you can select driving mode where gas engine will not be on, and you can only go slow speeds. You will get a warning if you are exceeding limit and it will automatically dip back into normal driving mode with the gas engine.

The little EV indicator (car with EV) comes on like the manual says when electric power is being used only in other driving modes than EV. Now this can occur at low speeds before the gas engine kicks in, or when you lift off the gas as other speeds and electric engine is keeping speed. I believe the EV indicator also comes on when you let off gas and you are just cruising. You can check this out by switching it into sport mode with the tach. You will see the rev counter goes down to zero because gas engine is off.
 
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