Should I Buy A Plug-In Hybrid Electric Car Or An All-Electric Car? Which Is Better?

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Electric Cars: The Basics


For those of you new to zero-emission electric driving, we recommend a read of the following articles:


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BEV Or PHEV? Which Is Better?


For those of you new to electric cars, it is worth following this link to read an introduction to the different types of electric vehicles (EVs). Though there are a few different type of electric cars, the most common types are: battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Both these types of EVs are environmentally-friendly, and offer numerous advantages over conventional internal combustion engine (ICE) petrol and diesel vehicles.

In general, given the significant improvement in availability, performance, electric range and affordability of pure electric cars, we recommend, where appropriate, choosing a battery-electric vehicle (BEV), instead of a PHEV. Yes, BEVs are also referred to as pure electric cars. An example of a BEV is the all-electric Lotus Eletre Hyper-SUV, while an example of a PHEV, is the Peugeot 408 Plug-In Hybrid!


Lotus Eletre
The All-Electric Lotus Eletre (credit: Lotus)

In our view, there are very few reasons to choose a PHEV, instead of a BEV, given the significant increase in residential and public EV charging infrastructure in the UK and emission-free electric range. Do keep in mind that the majority of EV charging sessions are done at home, and usually overnight. Moreover, the longest range electric cars available in 2023, have a claimed WLTP range well over 300 miles on a single charge. In fact, the all-electric Mercedes-Benz EQS has a claimed range up to a whopping 453 miles. Range anxiety has been archived to history!


BEV/ PHEV: What is the difference?
What is a battery-electric vehicle (BEV)?A battery-electric vehicle is more commonly referred to as a pure electric car. The EVs are ‘pure’ in that, the vehicle only uses electric power for propulsion i.e. a BEV does not have an internal combustion engine (ICE). It is easy to recognise these zero-tailpipe emission green cars, as these vehicles are silent (except for the artificial noise) and do not have a tailpipe! The electric vehicles have a much larger onboard EV battery than a PHEV. The EV battery on a BEV can be as large as 120 kWh, though an average in 60 kWh. In any case, most BEVs have an EV battery larger than 30 kWh. BEVs also use regenerative braking to improve the vehicle efficiency and electric range. However, the main source for the EV range is the EV battery, which can only be charged using an external power source, like an EV charger. BEVs can vary in electric range, depending on a number factors. However, the more recent BEVs deliver a range between 100 miles to 300 miles (WLTP) on a single charge. As an example, the all-electric VW ID.3 has a range up to 336 miles.
What is a Plug-in hybrid electric vehicle (PHEV)?Plug-in hybrid electric vehicles (PHEVs) aim to achieve the same objectives as a MHEV i.e. increase fuel efficiency and reduce tailpipe emissions. However there is much difference between a PHEV and a MHEV. The PHEV has a larger electric motor and onboard EV battery, that is used to assist the internal combustion engine (ICE), but also to propel the vehicle. In a MHEV, the small onboard electric motor does not propel the vehicle. PHEVs come in varied EV battery sizes, but in general, most PHEVs have an EV battery size below 20 kWh. A plug-in electric car is capable of up to 25 miles zero-tailpipe emission electric miles. However, some PHEVs are capable of even longer electric miles. The Volvo XC60 PHEV is a good example of a plug-in hybrid electric vehicle with a longer range (48.5 miles). Unlike a MHEV, a PHEV EV battery is charged by using an external power source, like a dedicated EV charger.

Though, both PHEVs and BEVs offer significant advantages over conventional petrol and diesel cars, it is clear, in that, pure electric cars offer more benefits than plug-in hybrid electric cars. For a start, a BEV is always zero-tailpipe emission electric driving, while PHEVs are only zero-tailpipe emissions, when driven on electric mode. Of course, zero-tailpipe emissions are key in combating the increased health risk from rising air pollution. Also, BEVs offer more financial savings over the long-term, to include, lower driving costs, lower service and maintenance costs, and a lot more.



BEVs: Key Attributes PHEVs: Key Attributes
Zero-tailpipe emissionsLow tailpipe emissions, but not zero
Large onboard EV battery (30 kWh – 110 kWh)Small onboard EV battery (8 kWh-20 kWh)
Useful pure electric range (usually between 100 – 400 miles)Limited pure electric range (usually between 20-50 miles)
Low maintenance and service costs Higher maintenance and service costs
Low benefit-in-kind (BiK) tax rate (2%)Higher BiK tax rates
Cheap to drive per mile More expensive to drive per mile

In general, a pure electric car should meet most day-to-day driving needs for families, and also for company-car drivers. In our view, the only reason to consider driving a PHEV, is that you lack access to EV charging infrastructure (residential or public), and have to travel significant distances on a regular basis. Otherwise, a pure electric car, is always the better option.

Top Two Reasons To Choose A PHEV
Driving long distances on a regular basis:In the UK, the average distance travelled by a car is a mere 30 miles. This should not come as a surprise, given that the majority of our commutes are short distances i.e. school-run, grocery store, gym, work, high street etc. How often do we really travel long journeys on a regular basis? Well, not often. However, if you are part of the minority that does travel significant distances on a very regular basis, potentially a PHEV maybe more appropriate.
EV charging stations:If you don’t have access to EV charging stations at home, the workplace or a destination public charging station, then maybe a plug-in hybrid may be worth considering. Having said that, given the significant increase in the deployment of electric car charging stations, private and public, most have access to EV charging.

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Author

Ashvin Suri

Ashvin has been involved with the renewables, energy efficiency and infrastructure sectors since 2006. He is passionate about the transition to a low-carbon economy and electric transportation. Ashvin commenced his career in 1994, working with US investment banks in New York. Post his MBA from the London Business School (1996-1998), he continued to work in investment banking at Flemings (London) and JPMorgan (London). His roles included corporate finance advisory, M&A and capital raising. He has been involved across diverse industry sectors, to include engineering, aerospace, oil & gas, airports and automotive across Asia and Europe. In 2010, he co-founded a solar development platform, for large scale ground and roof solar projects to include, the UK, Italy, Germany and France. He has also advised on various renewable energy (wind and solar) utility scale projects working with global institutional investors and independent power producers (IPP’s) in the renewable energy sector. He has also advised in key international markets like India, to include advising large-scale industrial and automotive group in India. Ashvin has also advised Indian Energy, an IPP backed by Guggenheim (a US$ 165 billion fund). He has also advised a US$ 2 billion, Singapore based group. Ashvin has also worked in the real estate and infrastructure sector, to including working with the Matrix Group (a US$ 4 billion property group in the UK) to launch one of the first few institutional real estate funds for the Indian real estate market. The fund was successfully launched with significant institutional support from the UK/ European markets. He has also advised on water infrastructure, to include advising a Swedish clean technology company in the water sector. He has also been involved with a number of early stage ventures.

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