Over the past few years, the UK has experienced a significant shift towards electric vehicles (EVs). According to the Society of Motor Manufacturers (SMMT), new EVs now represent 22.1% of total market share, up from 19.6% in 2024. Alongside this, however, hybrid cars have also enjoyed a surge in popularity, not only in the new car market, but also, and perhaps more importantly, in the used market.
Hybrids offer a practical, lower-risk route into electrified motoring for both drivers and fleets, delivering reduced emissions and impressive residual values without the same dependence on public charging infrastructure. But with upcoming Benefit-in-Kind (BiK) changes for plug-in hybrids (PHEVs) in April 2028, how long will this boom last?
The numbers suggest growing confidence
The numbers tell a clear story of growing confidence in the hybrid market. In 2023, hybrids and EVs together accounted for around 47% of all new car registrations, up from just over 8% in 2019. The used market for hybrids is also gathering pace, with sales increasing by around 75% between May 2023 and May 2025.
In April 2025, six of the top ten fastest-selling used cars in the UK were hybrids, with average days on market at just 24 days. A report also found that hybrids are better at holding their value than petrol, diesel and fully electric vehicles.
For fleets, this combination of popularity, speed of sale and price stability makes hybrids a compelling proposition, particularly for organisations seeking a practical, low-emission solution while EV infrastructure continues to develop.
Why are hybrids doing so well?
Hybrids offer a middle ground between fully internal combustion vehicles (ICE) and EVs. For many drivers they retain the familiarity and convenience of a petrol or diesel engine, while the electric assistance improves efficiency and lowers emissions, resulting in low running costs overall. Hybrids also remove the need for drivers to rely on public charging infrastructure, a particular concern for those who frequently travel long distances or lack domestic access to charging.
The used market has also become a major success story for hybrids. With younger stock entering circulation and vehicles selling quickly, hybrids offer consumers an affordable way to “go greener” without the cost or uncertainty of an EV. For fleets, faster turnover and dependable resale values make them an attractive short-term investment.
Manufacturers have expanded hybrid options across more model lines, helping supply meet demand. At the same time, regulations and emissions targets continue to encourage electrified vehicles – hybrids included – as part of the UK’s transition towards net zero.
How will company car tax hikes impact the hybrid market?
While hybrids are performing well now, the outlook could change from April 2028, when company car tax on plug-in hybrids is set to rise sharply.
For PHEVs with an electric range of 70–129 miles, the BiK rate will jump from 8% to 18% of P11D value, with employers also facing higher Class 1A NIC. This increase could alter the cost-benefit calculation for both drivers and fleet operators, potentially slowing demand as we approach that date.
While the BiK rates for EVs will also increase in that time, they will remain far lower than hybrids (rising from 3% this year to 7% in April 2028).
At the same time, the long-term direction of travel is clear. Government policy aims for all new car sales to be zero-emission, meaning hybrids may face further regulation changes in the years ahead.
The road ahead
Hybrids have carved out a strong position in the UK market, offering drivers and fleets a practical bridge between ICE and full electrification. For many, they represent an ideal balance between sustainability and everyday usability.
However, the hybrid boom may not last indefinitely. The rise in company car tax from 2028 and the government’s ongoing push towards zero-emission vehicles will inevitably shift the landscape.
In the meantime, they continue to play a vital role in offering a stepping stone towards an EV.
