What is a hybrid car and is it right for me?
Guide overview:
- Hybrids combine a petrol engine with an electric motor to cut fuel and emissions; the three types are mild (MHEV), full hybrid (HEV) and plug-in (PHEV).
- Full hybrids suit town driving with no charging needed, while plug-in hybrids save the most if you charge regularly and mainly do short daily trips.
- Hybrid cars come with the standard road tax rate, and company car drivers pay between 5% and 19% BiK on plug-in hybrids depending on electric-only range.
If you're considering a more fuel-efficient car but aren't ready to go fully electric, a hybrid could be the right choice.
Hybrid cars combine a petrol engine with electric power to improve fuel economy and reduce emissions.
In this guide, we'll explore all you need to know about hybrid cars, including the different types, standout models, running costs, and whether a hybrid is right for you.
Straightforward pricing from an independent leasing broker. At Nationwide Vehicle Contracts, we offer clear, transparent pricing with no hidden costs, helping you compare hybrid lease deals with confidence.
Hybrid cars are essentially the middle ground between a petrol and an electric car. They are powered by a combination of a petrol engine, an electric motor, and a battery.
The extent to which the car favours petrol or electric depends on the type of hybrid, but generally you'll get a more efficient drive and fewer emissions.
At low speeds and when pulling away, many hybrids can run on the electric motor alone, ideal for short trips and stop-start town driving where you'd otherwise be burning fuel. When you accelerate harder or reach motorway speeds, the petrol engine takes over or works alongside the motor to provide the power.
The clever part is how the battery is topped up. In a mild or full hybrid you never plug in, the battery recharges itself as you drive, capturing energy through regenerative braking (energy that's normally lost as heat when you slow down) and, in a full hybrid, using the petrol engine as a generator.
A plug-in hybrid works the same way but has a much larger battery you charge from a wall box or public charger, which is what gives it a longer electric range.
Because they lean on electric power in the conditions a petrol engine is least efficient (low speeds and stop-start traffic) hybrids are best for urban driving and daily commutes.
There are three different types of hybrids available in the UK: mild hybrid (MHEV), full hybrid (HEV) and plug-in hybrid (PHEV).
The table below compares them, and we've included electric cars for context.
Type? | Can drive on electric? | Needs charging? | Real world MPG | Electric range | Best for... |
|---|---|---|---|---|---|
Mild Hybrid (MHEV) | No | No | 40-55 mpg | 0 miles | Motorway driving, simple efficiency |
Full Hybrid (HEV) | Yes (short distances) | No | 50-70 mpg (urban) | 1-2 miles | Town/city driving |
Plug-in Hybrid (PHEV) | Yes | Yes | Over 100 mpg | 30-70 miles | Short daily trips + charging at home |
Electric (EV) | Fully electric | Yes | N/A | 150- 350+ miles | Zero-emissions driving |
A note on plug-in hybrid MPG. You'll often see official figures of 100+ mpg quoted for PHEVs, which are lab numbers that assume the battery is kept charged. In the real world, a PHEV that's rarely charged behaves like a heavier petrol car and can hinder efficiency. Charge it regularly for short trips and you'll see the big savings, leave it uncharged and you won't.
Mild hybrids are the most straight forward type of hybrid, using a small electric motor to support the engine and improve fuel efficiency.
They can't drive on electric power alone and don't need plugging in, which makes them a simple, no-fuss option for everyday driving.
Pros:
- Lower upfront cost than other hybrids
- Improved fuel economy vs petrol/diesel
- No need to plug in
Cons:
- Smaller fuel savings than a full or plug-in hybrid
- No electric-only driving
- Smaller environmental benefit
MHEV example
Ford Puma
The Puma is one of the UK's best-selling small EVs because it does all the basics right, and has an excellent mild-hybrid powertrain.
Its 1.0-litre EcoBoost petrol engine gets a helping hand from a 48-volt mild hybrid system, nudging official economy up to 52mpg, with mid-40s entirely realistic in everyday driving.
There's nothing to plug in and nothing new to learn, it just gets on with the job while saving you money on fuel.
Also known as self-charging hybrids, full hybrids can drive short distances using electric power alone, usually at low speeds.
They never need plugging in as the battery tops itself up as you drive and through regenerative braking, which makes them ideal for town and city use.
Pros:
- No charging required
- Excellent fuel efficiency in urban driving
- Smooth, quiet driving at low speeds
Cons:
- Limited electric-only range
- Less efficient on longer motorway runs
- Higher upfront cost than a mild-hybrid
Full hybrid example
Toyota Corolla Hatchback
The Corolla is arguably the definitive full hybrid. Around town it slips silently onto electric power at low speeds, then blends in the petrol engine so smoothly you'll barely notice. Officially it returns up to 64mpg, and unlike many rivals, real-world figures of 50 to 55mpg are genuinely achievable.
You never plug it in, it's famously reliable and is perfect for town and suburban drivers.
Plug-in hybrids combine a petrol engine with a larger battery that can be charged externally.
They can cover around 30 to 70 miles on electric power alone (depending on the model), so if you charge regularly and mostly do short journeys, you can cut fuel use dramatically, while still having the petrol engine for longer trips.
Pros:
- Significant fuel savings if charged regularly
- Lower CO2 emissions
- Lower company car tax than an MHEV or HEV
Cons:
- Needs access to charging to be worthwhile
- Much less efficient if you don't charge it
- Higher upfront cost
PHEV example
Ford Kuga
The Kuga is a roomy family SUV and one of the UK's most popular plug-in hybrids.
Its 2.5-litre petrol engine and battery deliver around 42 miles of electric-only range, perfect for the school trip or daily commute into the office. Charge it regularly and running costs tumble, while company car drivers also benefit from a 10% BiK rate for 2026/27.
Just note that the plug-in hybrid is only available from ST-Line and upwards.
Hybrids can reduce running costs compared with a standard petrol car, though how much you save depends on your driving.
- Fuel - Costs are typically lower, especially if you mainly drive in stop-start traffic where the hybrid can lean on electric power. A plug-in hybrid can dramatically reduce fuel costs if charged regularly and your daily drive is under 40 miles.
- Road tax - Most hybrids registered after April 2017 pay the standard VED rate of £200 a year for 2026/27. The old £10 discount for hybrids and alternative-fuel cars was removed in April 2025, so hybrids now pay the same standard rate as petrol and diesel cars.
Road tax is included in every lease agreement arranged with Nationwide Vehicle Contracts.
Company car drivers can benefit from lower Benefit-in-Kind rates, and this is where plug-in hybrids stand out. For the 2026/27 tax year:
- MHEV/HEV - Taxed on CO2 like a petrol car, typically around 20 to 30% (an efficient full hybrid such as the Corolla sits nearer 24%).
- PHEV - 5–19% depending on electric-only range. 130+ miles is 5%, 70–129 miles 8%, 40–69 miles 12%, 30–39 miles 14%, and under 30 miles around 18%.
- EV (for comparison) - just 4%.
Looking for more information on company car tax? Head over to our guide: Company car tax explained
One thing to plan for if you're leasing a PHEV for your business. From April 2028, plug-in hybrids in the 1–50g/km band are set to move to a single flat BiK rate (around 18%) regardless of electric range, which narrows the current advantage of a long-range PHEV.
A hybrid could be a good choice if you:
- Drive mainly in towns or cities
- Want better fuel efficiency without going fully electric
- Would rather not rely on charging (MHEV or HEV)
- Are a company car driver who can charge a PHEV regularly
A hybrid might be less suitable if you:
- Mainly drive long motorway journeys
- Want fewer tailpipe emissions
- Can't or won't charge a plug-in hybrid
For many UK drivers, a hybrid is a balanced, practical step between petrol and electric.
Expert UK support, with a human touch. Our team of leasing specialists is here to guide you every step of the way, helping you choose the right hybrid car for your needs. Speak to our experts or explore deals online.
“A hybrid is often the easiest first step away from petrol. If most of your driving is around town, a full hybrid will quietly save you fuel with no change to your routine. If you can charge at home or at work, a plug-in hybrid is a great option. ”

Leasing is a cost-effective way to drive a newer, more efficient hybrid without the large upfront cost of buying. You pay a fixed monthly amount for the length of your contract, which makes budgeting simple and predictable.
Benefits include:
- Lower upfront costs
- Fixed monthly payments
- Access to the latest hybrid models
- No worries about depreciation or resale value
Leasing a hybrid is especially useful if you like to upgrade regularly, as hybrid and EV technology is evolving rapidly. For a full breakdown of how it works, see our how leasing works guide.
Trusted since 2002, with over 180,000 leases arranged. Join the thousands of UK drivers who choose Nationwide Vehicle Contracts for straightforward, reliable car leasing. View our latest hybrid car lease deals.
Guide Information
Originally published: 13th December 2019
Last updated: 2nd April 2026



