New research has found that most new plug-in hybrid vehicles (PHEVs) cost more to buy than their fully electric equivalents, contrary to popular belief.
Cost Comparison
The Energy and Climate Intelligence Unit (ECIU) think tank analysed the UK’s 10 best-selling new PHEVs and found they were, on average, £4,150 more expensive than equivalent EVs. PHEVs, which combine an electric motor with a petrol or diesel engine, are often thought to be cheaper due to smaller batteries, but this analysis shows the opposite for popular models.
Examples include:
- The VW Tiguan PHEV costing £5,780 more than the VW ID.4 EV.
- The Ford Kuga PHEV costing £4,035 more than the Ford Explorer EV.
- The MG HS PHEV costing £3,400 more than the MG S5 EV.
Fuel Consumption and Running Costs
The ECIU also reported that PHEV fuel consumption is nearly six times higher than manufacturers claim, resulting in an average additional fuel cost of £620 per year compared to EVs. Figures from the Society of Motor Manufacturers and Traders (SMMT) show PHEV market share rose to 13.0% in March, up from 9.5% a year earlier.
Colin Walker, ECIU head of transport, warned that drivers seeking to shield themselves from high fuel prices might switch to vehicles that “simply won’t deliver the savings promised”. He stated: “The reality is that PHEVs cost more to buy, and more to run, than their electric equivalents. PHEVs rely on petrol for most of their driving, and burn much more of it than their manufacturers claim. The best way that drivers can reduce their exposure to spikes in global oil markets is to shift to vehicles that don’t need oil to move – EVs.”
Industry Response
SMMT chief executive Mike Hawes noted that car-makers are legally required to test all vehicles to the “same repeatable, Government-verified standard”. He added: “Despite massive discounting by manufacturers to drive up demand for EVs, many drivers have yet to be convinced given concerns over the availability and high cost of public charging. Therefore, manufacturers have also developed a range of technologies so everyone can reduce their emissions. Plug-in hybrids can be a crucial stepping stone to going fully electric, allowing people to become familiar with zero-emission driving and helping to overcome anxiety.”
Analysis by Autotrader last week revealed new EVs have become cheaper to buy than petrol models for the first time, attributed to Government grants and sustained manufacturer discounting. The zero-emissions vehicle (Zev) mandate sets targets for the proportion of new cars sold that are zero-emission, which generally means pure battery electric. This year it is 33%, but manufacturers can comply by using flexibilities such as selling high volumes of plug-in hybrids. The Government has rejected calls to bring forward a planned review of the programme in 2027, despite manufacturers claiming the mandate puts too much pressure on them to offer unsustainable discounts on new EVs.
