Are plug-in hybrids finally taking off in Australia? Huge 130 per cent growth driven by Mitsubishi Outlander PHEV, BYD Sealion 6 and FBT exemptions

While electric cars and traditional hybrids have exploded in popularity, plug-in hybrids have remained a relatively niche alternative. 

By the middle of 2024, though, sales are up 130 per cent, from 3582 sales in 2023 to 8223 thanks to more models becoming available and improved vehicle supply. 

Driven by the Mitsubishi Outlander PHEV and new BYD Sealion 6, the plug-in hybrid landscape is only going to become more populous in the coming months, including when BYD launches the first PHEV ute to be sold in Australia. 

Plug-in hybrids offer a unique combination of electric mobility but without range anxiety. Their battery packs, typically between 10-20kWh in capacity, offer between 50-150km of electric-only range, matching early electric cars. 

There is the added benefit of a combustion engine that can kick in when you run out of battery. This means long distance road trips, like Sydney-Melbourne, require less charge stop planning than in a battery electric car. 

The technology is only improving, too. Manufacturers are fitting larger battery packs, more efficient motors and adding DC fast-charge capability to their plug-in hybrids. 

BYD is heavily invested, releasing its fifth-gen Dual Motor intelligence (DM-i) system in China with claims of 2100km total driving range and nearly 200km from the battery alone. 

It is not a perfect solution. Owners need to be diligent with charging to get anywhere close to the official fuel consumption ratings, typically below 3L/100km. Dragging the extra battery weight around often means similar fuel consumption to a petrol vehicle when out of charge, too. 

In its first month on sale, the new BYD Sealion 6 medium SUV notched up a healthy 482 registrations – it’ll be quick to challenge the established Mitsubishi Outlander PHEV (2422) and Eclipse Cross PHEV (1482, both year-to-date).

Following the mainstream nameplates come some more premium options, including the Mazda CX-60 (460 to end of May), Volvo XC60 (390), Cupra Formentor (313), MG HS Plus EV (307), Porsche Cayenne e-Hybrid (304), Audi Q5 (301), Lexus NX (175) and Mercedes-AMG C63 (163).

Expect plug-in hybrid sales to easily reach beyond 15,000 this year. That’s still a long way off projected electric car (100,000) and hybrid (160,000) sales, but it is a big increase for the powertrain style. 

Also helping to drive sales are the current FBT exemptions for novated leasing on plug-in hybrid vehicles making them more attractive to buyers. This benefit will end on April 1, 2025. 

Hybrid hero Toyota sells a selection of plug-in hybrid models overseas, including the RAV4 and Prius Prime. Having committed to a 100 per cent hybrid or electric passenger car line-up (excluding GR) in Australia, Toyota may also join the fray. 

“As we evolve and battery technology evolves, there will be certain benefits that PHEV can offer that will also fit into those top three categories. Eventually, we'll have plug-in hybrids. What variants? We will have to decide,” Toyota Vice President of Sales, Marketing and Franchise Operations Sean Hanley told CarsGuide in May.