From 'worst of both worlds' to game-changer: The rocky road to success for plug-in hybrid vehicles such as the 2026 BYD Shark 6, Sealion 6 and Mitsubishi Outlander | Opinion

Oh, how quickly things change.

Only a few years ago car companies were excitedly revealing plans to ditch the internal combustion engine and go all-electric as soon as the end of the decade. And one particular technology in particular was derided above all others — plug-in hybrids (PHEVs).

It was declared by many as ‘the worst of both worlds’, offering neither the zero emissions motoring of an electric car nor the simplicity and cost-effectiveness of an internal combustion engine (ICE) alone.

Several car makers dismissed PHEVs as a bridging technology that was initially helpful but had outlived its usefulness as electric vehicles (EVs) become so much better and more popular with buyers.

The only problem is, that gap that needed bridging turned out to be a lot longer than car makers realised. EV sales have not continued to ascend at the rate many executives and industry analysts thought only two or three years ago. An initial surge has slowed dramatically, combining with a flood of new offerings to make for a crowded consumer market — without as many consumers as hoped.

Mercedes-Benz dropped PHEVs as recently as 2023, claiming buyers had made it clear they wanted either an EV or an ICE vehicle, only to bring back PHEVs in 2025. To be fair to Mercedes, it was not alone in this decision, but was just a more high-profile example.

Not all companies dismissed PHEV technology completely. Ford, for example, knew long ago that an electric Ranger would be both expensive and likely unpopular, whereas a Ranger PHEV would make more sense. A PHEV could still possess the key capabilities that owners want in their ute, without forcing buyers into the scary leap to all-electric. Hence why it committed to a Ranger PHEV years ago in preparation for this moment in time.

Not that Mercedes and others were completely wrong either. In 2022 PHEVs accounted for just 0.5 per cent of the total market, with a miniscule 5937 sales. Fast forward to June 2025 and Australians bought 6220 PHEVs in that month alone.

Sales of PHEVs are up more than 210 per cent in the first half of 2025, led by a surprising part of the industry — utes — which speaks to some of the key changes to the market that have created this shift.

The BYD Shark 6 accounted for nearly half (48 per cent) of those PHEV sales in June, which coincided with the introduction of credits and penalties under the New Vehicle Efficiency Standard beginning on July 1.

The introduction of the New Vehicle Efficiency Standard (NVES) has been another major factor in car markets reconsidered PHEVs, as it allows for much lower emissions ratings on official testing, even if it means extra cost for the customer.

Not that customers are buying PHEVs blindly either, as the technology has made a key breakthrough in recent years. Previously, PHEVs typically offered 50km or less on electric only range, and often that was just a claim and not really achievable in the real world. This meant a PHEV needed to rely on its ICE to either charge the battery and/or drive the wheels, which meant higher fuel consumption than a petrol or diesel model without the hybrid complexity - hence the claims that it was the worst of both EV and ICE worlds by its critics.

The BYD Shark 6 offers nearly 100km of EV range, the Mazda CX-60 P50e has a claimed 76km range and the GWM Haval H6 GT PHEV can potentially go up to 180km. That’s a massive difference that means you can either get most, if not all, of your daily commute done on EV power alone. Or it allows you to drive in hybrid mode, relying on the battery the majority of the time, and therefore reduce your fuel consumption to well below what even the most efficient ICE models can manage.

In these circumstances, with NVES pushing and consumer preferences changing, plus the improvements in technology and the increase in variety, don’t be surprised if PHEVs turn out to be the saviour of the car industry - at least for the rest of the decade.

It certainly looks that way, with more and more brands turning to PHEVs to help meet the NVES requirement and apparel to buyers who want more efficient vehicles without making the switch to an EV.

Although, as history shows, this could change quickly…