EU sees surge in PHEV sales

SALES of plug-in hybrid electric vehicles (PHEVs) have regained momentum in Europe as buyers – particularly business buyers – seek to secure tax benefits ahead of incoming legislative changes.

Europewide sales of PHEVs are up 4.9 per cent to the end of May 2024 against just 2.5 per cent for battery electric vehicles (BEVs).

Dataforce senior automotive analyst Benjamin Kibies said the top two PHEV markets through May were Germany with 73,700 unit sales (a 17.0 per cent increase over 2023) and the UK with 64,770 unit sales (a 31.0 per cent increase over 2023).

Research suggests longer-range PHEVs – some with emissions ratings of less than 20 grams of CO2 per kilometre – are assisting OEMs in meeting tougher emissions targets that begin in 2025, while also providing benefits to end users.

Schmidt Automotive Research believes there are several reasons for the recent surge in PHEV popularity, including the “utility factor” and obvious tax benefits.

PHEVs are now capable of delivering far higher all-electric ranges than was once possible with many now offering distances that “would have been considered acceptable for a BEV not that long ago”.

In Germany and the UK – the two biggest markets in Europe – PHEVs need an electric-only range of 80km or more to qualify for a monthly benefit-in-kind tax rate that is half that of ICE models.

However, others believe the market share for PHEVs has plateaued. PHEV share is still relatively low when compared with hybrid electric vehicles and is “unlikely to rise significantly”.

In Western Europe, PHEV penetration was 7.8 per cent through May, and is forecast to not rise above 10 per cent as emissions targets continue to tighten ahead of a zero-emissions mandate for 2035.

With Automotive News Europe