Hybrid cars are cheaper than ever as buyers turn to them for better fuel economy. Here are the best affordable hybrid and plug-in hybrid electric (PHEV) hatches, sedans, SUVs and utes on sale in Australia right now.
Hybrid
What is a hybrid car?
Hybrid car pros:
What is a plug-in hybrid electric vehicle (PHEV)?
PHEV pros:
What is a mild hybrid car?
Mild hybrid pros:
What is a battery-electric vehicle (BEV)?
BEV pros:
Should I buy a regular hybrid or PHEV?
Hybrid vs plug-in hybrid vs mild hybrid vs electric vehicle: what’s the difference?
Here’s a complete guide to hybrid cars and how they compare to battery-electric vehicles. From regular hybrids to PHEVs, mild hybrids and more, let’s see how they stack up against EVs.
Fuel-efficient hybrid cars are fast growing in popularity in Australia, driven by market leader Toyota now offering only hybrid power across much of its range and most other major brands launching their own new models to ensure they’re not left behind.
Ford, Mazda, Kia, Hyundai, MG, BYD, GWM… with few exceptions, the world’s leading automakers are today working on new petrol-electric hybrids to offer alongside full battery-electric vehicles (BEVs), often as a replacement for traditional petrol or diesel powertrains.
This is a welcome trend but can be confusing for prospective buyers with different types of hybrid systems now available, from mild hybrids to regular hybrids and plug-in hybrid electric vehicles (PHEVs). The technology is broadly the same in that it combines a petrol engine with an electric motor, but there are striking differences in the fuel-saving benefits and the ownership experience overall.
“RACV supports motorists who are ready to switch to hybrid, plug-in hybrid and battery-electric vehicles,” says RACV Head of Policy, James Williams. “This rapidly evolving area is providing Australians with greater vehicle choice and contributing to reduced emissions, less noise pollution and better air quality. But an understanding of the different hybrid systems and how they compare to battery-electric vehicles will help with the decision-making process.”
This guide covers regular hybrid, plug-hybrid, mild hybrid and battery-electric systems, pros and cons for each, popular models in each category and key points to consider when weighing up between hybrid and PHEV – or BEV.
In this article
What is a hybrid car?
A hybrid is a catch-all phrase that in automotive terms is used to describe a vehicle that combines two power sources. The most common combination is a petrol engine and one or more electric motors, but how these power sources interact can vary between brands and models.
As found on many Toyota models, most run a ‘parallel’ hybrid system, where the engine and motor operate in tandem to drive the wheels. Depending on the driving conditions and the high-voltage battery’s state of charge, the car may alter how much it draws on the electric motor or engine – or call for maximum power from both at the same time. The e-motor may be able to drive the car for short distances or under light loads, such as when reversing out of a driveway.
Another type of hybrid is called a ‘series’ hybrid, such as that used in Nissan e-Power models. Here, the internal combustion engine is used purely as a generator to create electricity, which is then fed to the battery pack to power one or more electric motors.
As with all hybrids and battery-electric vehicles, regenerative braking, which captures energy normally lost when decelerating, chimes in to help charge the battery. Some ‘regular’ hybrid systems (as non-plug-in hybrids are often called) can reduce fuel use by around half, with the biggest benefits in stop-start suburban driving where regenerative braking is prevalent.
Regular hybrid cars today account for 21 per cent of all new passenger cars and SUVs sold in Australia. That compares to 3% for PHEVs and 9% for BEVs. (Mild hybrid sales are not reported.) Entry prices are falling across all categories as competition intensifies, but regular hybrids in particular have become more affordable across the most popular segments, including small, medium and large SUVs and small cars.
More: The cheapest hybrid and PHEV cars in Australia for 2025
Hybrid car pros:
- Can achieve significantly lower fuel consumption than petrol cars, especially around town.
- Increasingly affordable technology found across popular segments.
- Well proven and accepted, thanks largely to pioneering efforts from Toyota and Honda.
Hybrid car cons:
- Runs purely on petrol and cannot be externally charged.
- May have no option to run on electricity alone.
- Compromised interior packaging, including cargo and cabin space.
Popular hybrid cars on sale in Australia:
- Toyota RAV4, Toyota Corolla, Toyota Camry, Toyota Corolla Cross, Toyota Yaris Cross
- Hyundai Kona Hybrid, Hyundai Tucson Hybrid, Hyundai Santa Fe Hybrid, Hyundai i30 Hybrid
- Kia Sportage HEV, Kia Sorento HEV, Kia Carnival HEV
- Nissan X-Trail e-Power, Nissan Qashqai e-Power
- GWM Haval H6 HEV, GWM Haval Jolion HEV, GWM Tank 300 HEV
- MG ZS Hybrid, MG3 Hybrid
- Lexus NX, Lexus LBX
More: The best affordable SUVs in Australia for 2025, including hybrid and EV
What is a plug-in hybrid electric vehicle (PHEV)?
As the name suggests, a plug-in hybrid electric vehicle (PHEV) runs two power sources – petrol and electric – but can be recharged externally. PHEVs are often marketed as the best of both worlds because they can be driven on electricity alone (potentially for many weeks at a time) when only used around town, yet always have the back-up of a petrol engine if you want to travel further without the need to charge.
Most PHEVs travel at least 40km in EV mode before needing to recharge, and some of the newer ones can cover well over 100km. However, PHEVs are also typically expensive and bring compromises. They’re expensive because the electric side of the hybrid equation includes a battery pack that’s much larger than that in a regular hybrid. They also have a petrol engine that needs to be big enough to keep the battery charged or to even power the car on its own – complete with hundreds of extra kilos of EV hardware.
If you’re diligent in charging a PHEV’s battery daily, something most people will need to do given the short EV-only range, they can be a good way to slash your fuel bills. They can also bring performance gains, improving acceleration and assisting with hauling heavy loads, such as towing a caravan.
On the flipside, electricity use in electric mode is typically higher in a PHEV than an EV because it’s dragging around a combustion engine, gearbox and fuel tank. Fuel consumption in a PHEV is also generally higher than a regular hybrid once the battery has been depleted, again because there’s extra weight to lug around.
To realise the benefits, owners need to charge their battery and drive it like an EV wherever possible. PHEVs also need to be serviced just as often as a petrol-powered car, even if you’re not using the engine often.
PHEVs are beginning to take off in Australia as people become familiar with the technology and appealing new models arrive in key segments such as SUVs and dual-cab utes. The benefits of Vehicle to Load (V2L) technology are also attractive, allowing owners to use the car’s battery pack to power external appliances.
PHEV pros:
- Electric-only driving around town can deliver significant savings at the petrol pump.
- No ‘range anxiety’ with the ability to travel long distances without needing to charge the battery.
- Potential for heavy-duty towing, eg. Ford Ranger PHEV (3500kg), BYD Shark 6 (2500kg)
PHEV cons:
- Battery needs to be charged regularly for maximum fuel-saving benefits.
- The technology is often expensive, making for a higher purchase price.
- Not particularly efficient in EV mode or hybrid mode.
Popular PHEVs on sale in Australia:
- Mitsubishi Outlander PHEV, Mitsubishi Eclipse Cross PHEV
- BYD Shark 6, BYD Sealion 6
- Ford Ranger PHEV
- GWM Cannon Alpha PHEV, GWM Haval H6 PHEV
- Mazda CX-60, Mazda CX-80
- Volvo XC60, Volvo XC90
More: 2026 Toyota RAV4 Plug-in Hybrid preview: price, specs, release date in Australia
What is a mild hybrid car?
A mild hybrid car provides some modest fuel saving benefits compared to traditional petrol-powered vehicle. The technology is broadly the same as what you get on a more traditional hybrid, but with some key differences.
Firstly, the generator or motor often won’t be used to power the car. Instead, it’ll allow the engine to shut down sooner and store energy captured through mild regenerative braking in a battery pack. That battery then powers ancillary functions in the car such as lights, ventilation and audio. By allowing the engine to shut down sooner while decelerating or when stopped, the mild hybrid system can help improve fuel economy and reduce emissions.
In some cases, mild hybrids can use their electric motors to provide a small boost when accelerating. You often won’t even feel it because the assistance is usually minimal, but you may find fuel consumption is slightly lower, especially in city driving.
Some brands, particularly those which have invested heavily in regular or plug-in hybrids, refuse to use the term ‘hybrid’ with mild hybrid tech. Toyota, for example, uses the term ‘V-Active’ to describe the system’s use of a 48-volt electric motor-generator that combines with a small lithium-ion battery to improve efficiency by up to 10 per cent in city driving.
The beauty of mild hybrid systems is that they’re a relatively affordable way to get incremental efficiency gains. The electric motors and batteries tend to be small and typically integrate easily with existing engines and transmissions, rather than requiring major engineering work.
Mild hybrid pros:
- Improves fuel economy of traditional internal combustion engines.
- Relatively affordable and easy to integrate into existing drivetrains.
- Can promote smoother driving with more responsiveness under acceleration.
Mild hybrid cons:
- Only modest fuel savings compared to other hybrid systems.
- Does not enable the car to be driven on electricity alone.
- Adds weight and complexity over a conventional combustion engine.
Popular mild hybrid cars for sale in Australia:
What is a battery-electric vehicle (BEV)?
As the name suggests, an electric vehicle (EV) uses electricity to exclusively run the car. There are different ways of doing this, but the most common are those that draw energy from a high-voltage battery to power one or more electric motors, hence the term battery-electric vehicle (BEV).
The battery is charged from an external power source, including solar-generated electricity. It’s relatively simple technology from the drivetrain perspective, but the requirement for a large battery pack adds significant cost to manufacturing. Batteries are high-tech, complex components that can cost tens of thousands of dollars.
Charging an electric car takes longer than it does to refuel a petrol or diesel car. Some EVs can add around 300km of driving range in about 15 minutes using a DC fast charger found at public charging stations, but most owners will find a home EV charger to be highly convenient and cost effective for their daily needs. A 7kW home charger will add about 35-40km of driving range per hour, depending on the EV.
There’s still progress to be made before long-distance driving in an EV is as effortless as it is in petrol or diesel cars, but there are significant cost benefits with charging an EV at home, especially if you have a rooftop solar system. A home solar battery system can bring further benefits.
The upfront purchase price of electric cars is falling as competition increases and new models launch in Australia from traditional and emerging brands. EVs typically have longer service intervals than a petrol or diesel car and lower servicing costs, while the overall driving experience and unique features found in an EV are drawcards for many prospective buyers.
BEV pros:
- Typically strong performance and driveability.
- Potential to significantly lower running costs and reduce servicing requirements.
- Highly convenient and cost effective to charge from home with a dedicated EV charger.
BEV cons:
- Generally more expensive to buy than a petrol or hybrid car.
- Limited driving range for some models can add time and complexity to longer trips.
- National EV public charging infrastructure still a work in progress.
Popular BEVs for sale in Australia:
Should I buy a regular hybrid or PHEV?
The powertrain technology that has really taken off in recent years is the oldest of the lot: regular hybrids.
It’s easy to see why hybrid cars are popular. With a price premium over an equivalent petrol model as little as $1500, the reduction in fuel consumption – up to 50 per cent – can quickly pay that off. They’re also highly convenient, with no need for external charging.
Mild hybrids are a nice-to-have but because the fuel saving benefits aren’t as great as regular hybrids, they’re often not worth the extra outlay (presuming you’re given a choice).
Plug-in hybrids make most sense for those who are prepared to charge them to cover their daily needs, which ideally won’t be any further than the car’s EV range, and who also need to travel long distances on a regular basis. This is particularly relevant if the areas covered aren’t well serviced by public EV charging infrastructure.
Should I buy a plug-in hybrid or EV?
In short, a battery-electric vehicle typically offers better performance, better efficiency, unique features and a better driving experience than a plug-in hybrid. But the long answer as to which is best for you comes down to how and where you plan to use it.
EVs are terrific for zipping around town and for staying within a few hundred kilometres of home base. They’re a great way to lower your running costs and allow you to enjoy an arguably superior driving experience, thanks to excellent acceleration and responsiveness. Their interior packaging may also be better than hybrid cars.
Venturing further afield with an EV requires some planning and understanding of the public charging network, which is constantly expanding. That said, EVs can easily tackle long drives along popular regional routes, especially up the east coast of Australia.
Plug-in hybrids can work well for predominantly shorter daily trips, as long as you’re fastidious with charging from home. And PHEVs give that freedom of being able to take off without having to worry about charging when out on the road.
