Plug-in hybrid economy test | Does it pay to plug-in?

The Test | The Cars | The Results | Conclusion

Plug-in hybrids have been a lifeline for the company car driver in recent years as benefit-in-kind (BIK) tax rates soared and the availability of suitable battery electric cars failed to keep pace.

Things might be changing now, but for many drivers the practicality of a plug-in hybrid (PHEV) still holds value. In the first half of 2024, 16% of the cars sold into the true fleet market were PHEVs.

The cars have become a lot more capable, too. Not that long ago we were reporting stories of four-year-old PHEVs returning to auctions with their charging cables still wrapped in plastic. While some of those models could barely manage 20 miles on a charge, the latest versions promise more than double that.

And if used properly, its possible to get some diesel-busting economy figures.

Tax rules mean that a PHEV needs to be able to cover 40 miles (WLTP) on electric power alone to qualify for the 8% BIK rate. Cars that exceed 70 miles in the official test attract just a 5% charge.

Even a basic petrol or diesel car will sit in the 28% band, so the tax savings are certainly significant.