Hybrid sales declining: the start of the end for PHEVs?

In recent months, registrations of plug-in hybrid vehicles have fallen. According to figures from New AutoMotives Electric Car Count, overall sales of new cars in May 2022 fell by over 20% compared to May 2021, while new registrations of battery electric vehicles (BEVs) increased by just under 20%. The increase in BEV registrations comes amid a surge in fuel prices, and new figures that show that the per mile cost of running a BEV has sunk to around 80% of the bill for petrol and diesel models.

In contrast, the take-up of plug-in hybrid vehicles (PHEVs) fell by 25% compared to May last year. Registrations of non-plug-in hybrids (HEVs or ‘mild hybrids’) have grown or remained steady.

Previous comparable drops in the registration of PHEVs, such as the 50.4% drop recorded in June 2019, have been driven by the termination of relevant government grant schemes. The absence of a similar external cause for the drop recorded in May 2022 indicates the decrease is organic and consumer-driven and thus probably signals the beginning of a longer-term trend.

This is likely to be happening for two reasons.

Firstly, equipped with a stronger understanding of the benefits of BEVs compared to PHEV models, drivers are increasingly choosing to go fully electric. Increased consumer knowledge has translated to a stronger public understanding of the downsides of PHEVs.

According to Ben Nelmes, Head of Policy and Research at New AutoMotive;

“Motorists are discovering that fully electric cars are cheaper to run, less hassle to maintain, and offer a better driving experience”

The current financial pressures affecting British motorists means the high ongoing costs associated with PHEVs are increasingly off-putting and are pushing consumers towards BEVs, standard hybrids, or traditional ICE vehicles. These same pressures mean the savings offered by BEVs are of increasing value to British motorists.

Secondly, the recent trend towards less efficient HEVs suggests that some drivers may be turning to hybrids that do not have a plug - in the belief that these cars will yield some of the benefits of driving an electric car. ‘Mild hybrids’ are essentially petrol or diesel cars with a small motor and battery but can’t be charged via plug-in.

These ‘mild hybrids’ pose a risk for the UK’s carbon emissions and are likely to leave drivers out of pocket with few of the running cost benefits of switching to an electric car. Despite being called a ‘hybrid’, they often offer little fuel efficiency improvement.

Ben Nelmes, Head of Policy and Research at New AutoMotive says;

“These cars are a bad choice for consumers. They are likely to cost more to run, are worse for the environment, and keep the country dependent on oil imports, including Russian diesel.”

“Many are also not as fuel-efficient as they claim”

The Department for Transport wants to prevent any rise in the CO2 emissions from new cars, but there are signs that the average CO2 ratings of hybrids have been on the rise in the last three years. A continued upward trend in the increase of the registration of new ‘mild hybrids’ could undermine the successful progress of the UK’s transition to BEVs, whilst providing poor value for British consumers during a time of increased financial stress.

As inflation rises, real wages drop, and Britain faces a severe cost of living crisis, BEVs offer savings and value for money to British motorists. The 80% difference in the per mile cost of running an electric vehicle compared to an ICE vehicle translates to a saving of around £1,000 per annum for motorists who travel 7,400 miles a year – a massive saving at any time, but of increased value for motorists given the current economic climate.

Whilst the decline in PHEV sales and the continued increase in BEV sales is to be celebrated, it must be ensured that consumers who are turning their backs on PHEVs not only understand the benefits of BEVs in comparison to ICE vehicles, but also the inherent flaws of ‘mild hybrids’. The British Government needs to ensure that in the future, new petrol, diesel, and hybrid cars do not become more polluting and bring forward an ambitious, flexible, and simple zero emissions vehicle (ZEV) mandate to enable more British motorists to access the benefits of fully electric cars as soon as possible.