Should You Still Consider a Plug-In Hybrid in 2025?

In 2025, the automotive landscape in Australia continues to shift rapidly toward electrification. With fully electric vehicles (EVs) dominating headlines, one critical question remains for many Aussie car buyers: Should you still consider a plug-in hybrid electric vehicle (PHEV)?

This comprehensive guide breaks down everything you need to know about plug-in hybrids in 2025, how they compare to EVs, and whether they still make sense for your lifestyle, budget, and driving habits in Australia.

Table of Contents

1. What Is a Plug-In Hybrid?

2. Evolution of PHEVs: Where Are We in 2025?

3. PHEVs vs EVs: Key Comparisons

4. Advantages of Plug-In Hybrids in Australia

5. Limitations of PHEVs in Today’s Market

6. Battery and Charging Considerations

7. Costs: Upfront vs Running Expenses

8. Best Plug-In Hybrids in Australia 2025

9. Are PHEVs Future-Proof?

10. Who Should Buy a PHEV in 2025?

11. What Experts Say: Industry Outlook

12. Final Verdict: Are PHEVs Still Worth It?

13. FAQs About Plug-In Hybrids

1. What Is a Plug-In Hybrid?

A Plug-In Hybrid Electric Vehicle (PHEV) is a car that combines a petrol engine with an electric motor and a rechargeable battery. Unlike traditional hybrids, PHEVs can be plugged into a charging station to operate in full-electric mode for short distances (typically 40–80 km).

PHEVs aim to give drivers the best of both worlds:

• EV-like driving in urban settings

• Internal combustion reliability for long trips

2. Evolution of PHEVs: Where Are We in 2025?

The Australian PHEV market has evolved substantially over the past five years. In 2025, we see:

• Longer EV-only range (some models exceed 100 km)

• Faster charging capability

• Broader vehicle selection, including SUVs, sedans, and even utes

• More integration with smart home energy systems

Sales of PHEVs saw a surge between 2020–2023, driven by fuel price concerns and early EV range anxiety. However, with EV infrastructure rapidly improving and battery prices falling, PHEVs are now at a crossroads.

3. PHEVs vs EVs: Key Comparisons

4. Advantages of Plug-In Hybrids in Australia

✅ No Range Anxiety

With petrol backup, you don’t have to worry about running out of charge on a long road trip, especially in remote regions of Australia.

✅ Electric Commutes, Petrol Backups

For city dwellers with short daily drives (under 60 km), a PHEV can function like an EV most of the time.

✅ Lower Emissions Than ICE

If charged regularly, a PHEV can reduce CO₂ emissions by over 50% compared to a standard petrol car.

✅ Tax Incentives (Still Available)

Some states still offer EV-like benefits for PHEVs, such as:

• Lower rego in NSW and VIC

• Fringe Benefits Tax (FBT) savings for eligible models

✅ Perfect Transition for EV Hesitants

If you’re not fully ready for a pure EV—either due to price, charging setup, or infrastructure—a PHEV offers a transitional step.

5. Limitations of PHEVs in Today’s Market

Despite their appeal, PHEVs come with some challenges:

❌ Higher Complexity

You’re essentially managing two powertrains—an electric system and a petrol engine—making servicing more complex.

❌ Charging Discipline Required

If you don’t regularly plug in your PHEV, you're essentially driving a heavier, less efficient petrol car.

❌ Smaller Boot Space

Batteries often sit beneath the boot, reducing cargo space—something to consider for families or SUV buyers.

❌ Lower Resale Value

With EV adoption accelerating, there are concerns that PHEVs could face quicker depreciation compared to pure EVs or ICE cars.

6. Battery and Charging Considerations

In 2025, most PHEVs offer:

• 3.6 kW onboard AC charging

• 5–7 hours charging on a regular wall socket

• No DC fast charging (unlike most EVs)

Public charging infrastructure in Australia prioritises fast chargers for EVs, meaning PHEV users may need to rely more on home charging setups.

Battery life is generally strong—many PHEVs come with 8-year warranties for the battery pack.

7. Costs: Upfront vs Running Expenses

🔹 Upfront Cost

PHEVs are typically $5,000–$10,000 cheaper than their full-EV counterparts in the same category.

🔹 Running Cost

• Electricity: ~$0.15/km (depending on off-peak rates)

• Petrol (when needed): More expensive than EV, cheaper than ICE-only vehicles

• Servicing: More than EV, less than traditional ICE over the long run

8. Best Plug-In Hybrids in Australia 2025

Here are the top PHEVs available in Australia this year:

🔸 2025 Mitsubishi Outlander PHEV

• Up to 84 km EV range

• AWD available

• Strong family SUV option

🔸 2025 Toyota RAV4 PHEV (Prime)

• Awaited for Aussie release

• Around 75 km electric range

• Toyota reliability, hybrid efficiency

🔸 2025 Kia Sorento PHEV

• 7-seater with 68 km electric range

• Premium feel and safety tech

🔸 2025 MG HS Plus EV

• Budget-friendly option

• Approx. 63 km electric range

• Great value under $50k

🔸 2025 Volvo XC60 Recharge

• Luxury PHEV SUV

• 85+ km electric range

• Scandinavian comfort and tech

9. Are PHEVs Future-Proof?

This is the big question in 2025.

The Good:

• Government incentives still exist

• Technology is improving

• Charging infrastructure is growing (slowly in rural areas)

The Bad:

• Many carmakers (e.g., Tesla, Polestar, BYD) are skipping PHEVs entirely

• Europe plans to phase out new PHEVs by 2035

• Australia’s policy focus is shifting to BEVs

In short, PHEVs may have a 5–10 year relevance window before EV infrastructure and price parity render them obsolete.

10. Who Should Buy a PHEV in 2025?

You might benefit from a PHEV if:

• Your daily commute is under 50–60 km

• You don’t have access to fast charging regularly

• You take occasional long trips

• You want a taste of EV driving but aren’t ready to commit

It’s not ideal if:

• You rarely charge your car

• You want ultra-low maintenance

• You want future-proof tech with no fossil fuel dependency

11. What Experts Say: Industry Outlook

🔹 Car Manufacturers:

• Hyundai, Kia, and Mitsubishi continue supporting PHEV lines

• Toyota and Mazda are cautiously expanding their plug-in hybrid range

🔹 Analysts:

• BloombergNEF predicts PHEV sales to decline after 2027

• The real EV wave is expected between 2025–2030

🔹 Government Direction:

• Incentives favour BEVs

• Future emissions targets may penalise dual-drivetrain vehicles

12. Final Verdict: Are PHEVs Still Worth It?

Yes—But Only for the Right Buyer.

In 2025, PHEVs remain a smart choice for a specific segment of Aussie drivers:

• Those not fully ready for EVs

• Regional drivers without reliable charging

• Commuters with regular short trips

But if you’re already equipped for full EV ownership, many of the benefits of a PHEV are outweighed by the simplicity and running costs of battery-electric vehicles.

As we move further into the decade, the PHEV will likely become a stepping stone rather than a long-term solution.

13. FAQs About Plug-In Hybrids

Q: Can I drive a PHEV without ever charging it?
Yes, but that defeats its purpose and leads to higher fuel consumption.

Q: Do PHEVs qualify for EV incentives in Australia?
Some do—especially those under luxury car tax (LCT) thresholds and used for fleet/FBT exemptions.

Q: Are PHEVs good for towing?
Only some models—like the Outlander PHEV or Sorento PHEV—offer decent towing capacity.

Q: What happens when the battery runs out?
The car automatically switches to petrol-hybrid mode and drives like a regular hybrid.

If you're considering a plug-in hybrid in 2025, do your homework. Review your driving patterns, budget, and long-term plans. In many ways, the PHEV is still a great compromise between past and future mobility—as long as you know what you're signing up for.