Motorists ‘could save £850 a year by choosing an electric car over a hybrid'

The Guardian

22-04-2025

British households could miss out on savings of more than £800 a year on running costs if they choose a hybrid car over an electric one, amid concerns that recent government rule changes open the door for manufacturers to sell more polluting cars.
Owners of hybrid cars only save an average of £13 a year compared with drivers of petrol vehicles, but could save as much as £850 annually if they buy electric rather than petrol, according to analysis by the Energy and Climate Intelligence Unit (ECIU), a thinktank.
This month, Keir Starmer's government changed electric vehicle rules to allow more sales of cars with petrol and diesel engines until 2035, after extensive lobbying by the automotive industry.
Allowing sales of hybrids, which combine a small battery with an internal combustion engine, was a key part of the changes to rules, known as the zero-emission vehicle (ZEV) mandate, that force carmakers to sell an increased proportion of electric cars each year. The government allowed sales of models such as the Toyota Prius and those using Nissan's 'e-Power' until 2035. Those cars use the engine to charge the battery, meaning they are not capable of zero-emission driving.
Carmakers argued successfully that hybrids cut carbon emissions compared with petrol cars. However, their main motivation for continuing with hybrid sales is that they are more profitable than electric cars. Petrol carmakers said that they needed those profits to invest in future electric production, with a global economic slowdown amid the US president Donald Trump's trade war making it even harder to switch.
Colin Walker, head of transport at the ECIU, said: 'While pitched as a response to the economic chaos of Trump's tariffs, these changes could actually make things worse, costing UK consumers. With less onus on manufacturers to compete to sell EVs in the UK, and the government encouraging them to sell more hybrids instead, potentially millions of families could be left to foot [the bill] for more expensive driving.
'Given how popular EVs are with their drivers, this looks like bad policy for families, driving up the nation's driving bill.'
Hybrids can still be attractive financially for households, partly because they cost less upfront than electric cars. Hybrids can also appeal to car buyers who do not have easy access to charging, a problem in many urban areas, particularly outside London.
However, electric cars make significant savings on fuel and maintenance, meaning the total cost of ownership is lower for most people using electric cars.
The switch to electric cars is unavoidable if the UK is to hit its climate goals. Walker criticised 'policy flip-flopping' on electric car rules, which he said would ultimately make the transition more expensive. The nascent and fast-growing EV charging industry has also warned of lost investment because of the changes.
The ZEV mandate changes will also give incentives to carmakers to sell more plug-in hybrid electric vehicles (PHEVs), hybrids whose battery can be charged from a plug. PHEVs are theoretically significantly greener than hybrids because they are capable of running with zero emissions – although there are concerns over whether PHEV owners plug in enough to realise the green savings.
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The ECIU's analysis found that the UK's bestselling PHEVs offer their owners savings of £117 a year in running costs over their petrol equivalents. However, running cost savings for the equivalent electric models jump to more than £1,050 a year.
Quentin Willson, the founder of FairCharge, which campaigns for policies that support electric vehicles, said: 'Government extending the sales of new hybrids to 2035 is a grave misstep. Well-intentioned drivers are being misled by the alleged benefits of hybrids, which are neither significantly more economical than combustion cars nor better for urban air quality.
'The softening of the ZEV mandate allows carmakers to build combustion engines for longer and ease back on EV targets. The UK is currently Europe's most successful market for EVs, but succumbing to pressure from carmakers to dilute the mandate threatens that success and will allow Chinese carmakers to dominate. This is shortsighted, disappointing and ill-judged government policy.'