The UK automotive landscape is witnessing a notable surge in the popularity of hybrid vehicles, a trend that reflects both consumer preferences and the evolving regulatory framework.
As of March 24, 2025, hybrids—combining traditional internal combustion engines (ICE) with electric power—are emerging as a practical stepping stone in the nation’s journey towards full electrification, driven by policies like the Zero Emission Vehicle (ZEV) Mandate and the 2035 ban on new petrol and diesel car sales.
In this blog, we’ll explore the factors fuelling the rise of hybrids, their impact on the market, and what this means for drivers navigating their vehicle choices.
Why Hybrid Vehicles Are Gaining Traction
Hybrid vehicles, encompassing hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), are gaining ground in the UK due to their unique blend of efficiency and flexibility.
Unlike fully electric vehicles (EVs), hybrids don’t rely solely on charging infrastructure, easing concerns about range anxiety—a persistent hurdle given the UK’s 72,000 public chargepoints fall short of the 300,000 targeted for 2030.
HEVs self-charge through regenerative braking and the engine, while PHEVs offer a plug-in electric range (typically 20-40 miles) before switching to petrol or diesel.
The numbers tell the story. In 2024, HEVs accounted for 14.8% of new car registrations, up from 11.2% in 2022, while PHEVs held steady at 7.1%, per the Society of Motor Manufacturers and Traders (SMMT).
This growth outpaces pure EVs in some segments, reflecting a consumer base seeking greener options without fully committing to electric-only driving.
Regulatory Drivers and Policy Context
The ZEV Mandate, requiring 28% of new car sales to be zero-emission in 2025, excludes HEVs from its quotas, focusing instead on EVs and a shrinking allowance for PHEVs (credited until 2030).
However, hybrids benefit from transitional policies. Until 2035, new hybrids can still be sold, offering manufacturers like Toyota and Ford a buffer as they scale EV production. The government’s delay of the ICE ban from 2030 to 2035, announced in 2023, further bolsters hybrids as a pragmatic choice during this shift.
Tax incentives also play a role. PHEVs with low CO2 emissions (below 50g/km) enjoy reduced Benefit-in-Kind (BiK) rates for company car drivers—8% versus 37% for high-emission petrol models in 2025—making them attractive to fleets. HEVs, while less tax-advantaged, avoid the £425 annual Vehicle Excise Duty (VED) EVs face from April 2025, appealing to private buyers.
Consumer Appeal: Practicality Meets Sustainability
Hybrids resonate with drivers seeking sustainability without sacrificing convenience. HEVs like the Toyota Corolla or Honda Civic offer fuel economy upwards of 60 mpg, slashing running costs—around £1,200 annually versus £1,800 for a comparable petrol car, per RAC estimates.
PHEVs, such as the BMW 330e, blend electric-only commuting with petrol-powered range for longer trips, averaging 100-150 mpg when charged regularly.
This versatility suits the UK’s uneven charging landscape. Rural drivers, where chargepoints average 60-80 per 100,000 people versus London’s 250, find hybrids less daunting than EVs. For someone with a petrol BMW, mulling over whether it’s time to sell my BMW and upgrade, a hybrid offers a familiar yet greener alternative without the leap to full electric.
Environmental benefits add to the allure. HEVs cut CO2 emissions by 20-30% compared to pure ICE cars, while PHEVs can achieve 50-70% reductions if charged often, aligning with the UK’s net-zero 2050 goal.
A 2024 SMMT survey found 58% of buyers value this eco-edge, driving demand.
Impact on Manufacturers and the Market
Manufacturers are leaning into hybrids to bridge the electrification gap. Toyota, the hybrid pioneer with its Prius since 1997, dominates with a 70% share of UK HEV sales in 2024. Ford’s Kuga PHEV leads its category, while premium brands like Volvo (XC60 PHEV) and Lexus expand offerings.
This focus hedges against ZEV Mandate penalties—£15,000 per non-compliant car—while EV infrastructure matures.
The market reflects this shift. Hybrids’ 21.9% combined share in 2024 outstrips EVs’ 19.6%, per SMMT data, buoyed by discounts as manufacturers balance ICE and EV quotas.
Used hybrid values also hold firm—Auto Trader reports a 10% price premium over petrol equivalents—contrasting with softening ICE residuals as 2035 nears.
Challenges Facing Hybrid Growth
Despite their rise, hybrids face hurdles. Critics argue they’re a half-measure—PHEVs emit 28g/km on average versus EVs’ zero, per Transport & Environment, and real-world efficiency dips if owners skip charging.
The ZEV Mandate’s phasing out of PHEV credits by 2030 signals a finite role, pressuring manufacturers to pivot fully to EVs.
Cost is another barrier. HEVs start at £25,000-£30,000, PHEVs at £35,000+, outpacing many petrol cars (£20,000-£25,000).
Battery production, reliant on strained supply chains for lithium and cobalt, adds volatility—semiconductor shortages alone cut UK output by 7% in 2024. Infrastructure gaps also limit PHEV appeal; without home charging, their electric edge fades.
Opportunities for Hybrids in the UK
Hybrids offer a lifeline amid these challenges. They ease the transition for drivers wary of EVs, supporting the 2035 goal indirectly by cutting emissions now. Manufacturers can refine hybrid tech—Toyota’s next-gen systems promise 80 mpg—while scaling EV lines.
Government support, like extending PHEV tax breaks or funding workplace chargers, could sustain momentum.
The used market is a growth frontier. As early hybrids enter circulation, affordability rises—second-hand Toyota Yaris HEVs now fetch £15,000-£18,000, per What Car?
This democratises access, broadening their appeal across demographics.
What It Means for Drivers
For drivers, hybrids blend practicality with progress. Running costs drop—PHEVs save £500-£1,000 yearly if charged—while avoiding EV range worries.
For a Tesla owner debating whether to sell my Tesla and try a hybrid, the switch might suit longer trips without charger hunts, though Tesla’s electric perks remain unmatched.
The shift influences choices too. As hybrids gain traction, petrol car values may slip, while hybrid residuals stabilise, per Auto Trader. Fleet drivers benefit most—PHEVs’ BiK rates save £2,000+ annually versus ICE equivalents—though private buyers weigh upfront costs against long-term gains.
The Future of Hybrids in the UK
By 2030, hybrids’ role may peak then wane. The ZEV Mandate’s 52% zero-emission target that year sidelines HEVs, and PHEV credits end, pushing EVs centre stage. Yet, until charging matches demand—rural coverage must triple—hybrids remain vital.
Post-2035, only “electrified” hybrids with significant electric range may persist, per government hints.
Innovation will shape this arc. Hydrogen hybrids, trialled by Toyota, or biofuel blends could extend their life, though EVs dominate policy focus.
For now, hybrids bridge the gap, offering a pragmatic path to 2035.
Conclusion: Hybrids as a Stepping Stone
The rise of hybrid vehicles in the UK marks a pivotal chapter in the shift to sustainable transport. Balancing efficiency, flexibility, and eco-benefits, they meet drivers where they are—whether sticking with petrol or leaping to electric.
For manufacturers and consumers alike, hybrids ease the journey to an all-EV future, smoothing regulatory and practical bumps. As 2035 looms, their relevance shines, offering a greener ride today while paving the way for tomorrow’s cleaner roads.
