Electric cars now cheaper than plug-in hybrids, study finds
Car changing is a big deal
Plug-in hybrids, once seen as a cheaper step to electric cars, are now often more expensive to buy than EVs, new analysis shows – and may also cost more to run than expected.
Many of the most popular plug-in hybrids (PHEVs) are now more expensive to buy than comparable fully electric cars, challenging the idea that hybrids offer a cheaper route into electrification.
PHEVs combine a petrol or diesel engine with a battery-powered electric motor, and are often marketed as a middle ground between traditional combustion engines and fully electric vehicles. But new analysis by the think tank Energy and Climate Intelligence Unit (ECIU) says that advantage is increasingly difficult to justify on cost grounds.
What did the study find?
The ECIU’s analysis of the UK’s 10 best-selling new plug-in hybrids found they cost, on average, £4,150 more than comparable electric models.
Examples include:
- Volkswagen Tiguan PHEV costing £5,780 more than the Volkswagen ID4 EV
- Ford Kuga PHEV costing £4,035 more than the Ford Explorer EV
- MG HS PHEV costing £3,400 more than the MG S5 EV
The group also claims real-world fuel consumption is significantly higher than manufacturers’ official figures, meaning drivers spend around £620 more per year on fuel compared with electric car alternatives.
Meanwhile, data from the Society of Motor Manufacturers and Traders (SMMT) shows plug-in hybrids are still growing in popularity, with their UK market share rising to 13% in March, up from 9.5% a year earlier.
The ECIU argues that plug-in hybrids may not deliver the savings many drivers expect.
Colin Walker, head of transport at the think tank, warned that drivers trying to protect themselves from fuel price volatility could end up with cars that “simply won’t deliver the savings promised”.
He said: “The reality is that PHEVs cost more to buy, and more to run, than their electric equivalents. They 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 – electric cars.”
However, SMMT chief executive Mike Hawes defended current testing and said manufacturers are working across multiple technologies to reduce emissions and meet demand.
“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,” he told the Press Association.
“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.”
What it means for you
If you’re choosing between a plug-in hybrid and an electric car, the key question is whether the “in-between” option still makes financial sense.
The ECIU research suggests you could be paying a premium for added complexity without getting a lower purchase price in return.
There’s also the question of running costs. Hybrids are designed to save fuel by running on electricity for short trips, but in everyday driving they often rely heavily on petrol. If you’re not regularly charging, those expected savings can quickly disappear.
By contrast, electric cars are becoming more affordable, helped by discounts and incentives such as the Electric Car Grant. In some cases, they are already competitive with petrol and hybrid models, and the overall cost picture is shifting in their favour.
One thing to keep in mind is that relying on expensive public charging can sometimes cost as much as, or even more than, petrol. Because of this, electric cars tend to make the most financial sense if you can charge at home or at work, where electricity is usually much cheaper.
So when weighing up your next car, it’s worth looking beyond the idea of hybrids as the “compromise choice” and comparing real-world buying prices and running costs directly with electric models.
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