New study underscores the benefits of PHEVs

New research suggests plug-in hybrid electric vehicles (PHEVs) are helping reduce emissions quicker than expected, with most owners revealing they hardly ever fire up the internal combustion engine.

The study was commissioned by the National Automotive Leasing and Salary Packaging Association (NALSPA) and also showed the recent spike in PHEV uptake stems from the technology’s eligibility for the Federal Government’s fringe benefits tax exemption.

According to the study – which involved 600 PHEV drivers in Australia – three in five participants nominated the FBT exemption as the top reason they leased a PHEV, with 90 per cent saying the associated saving played a key role in decision making.

Mitsubishi Australia has been one of the most vocal advocates for PHEV adoption for years now, with CEO Shaun Westcott believing the technology will make the biggest environmental impact, in the shortest amount of time, with the least expense.

“We commissioned our own study here in Australia and our research shows across all Mitsubishi PHEV owners – and there’s a small difference between Eclipse Cross and Outlander – drive in pure EV mode 81 per cent of the time,” he told carsales.

“The significant majority of our people drive in pure EV mode.”

Westcott added data pulled from his personal Mitsubishi Outlander PHEV SUV shows he drives solely on electricity 98 per cent of the time.

The NALSPA research yielded broadly similar results, finding 65 per cent of PHEV drivers use electric power for about two-thirds of their trip and that 64 per cent are saving as much as $75 per week on fuel.

Not only are PHEV sales on the rise, the technology is also gaining an increasingly loyal fan base, with most survey participants saying they wouldn’t buy a battery-electric, with half discouraged by ‘the lack of public charging infrastructure’ and the other half by the time it takes to recharge on the road.

Before leasing a PHEV, 73 per cent of those surveyed said they were considering a petrol, diesel or regular hybrid vehicle, however, only 48 per cent would now consider one of those vehicles after going plug-in.

“This data quashes the claim that PHEV drivers hardly plug in or hardly use electric-only mode,” NALSPA chief executive Rohan Martin said.

“Most PHEV drivers use their cars as electric vehicles most of the time by recharging the battery every night and using EV mode.”

Martin called for an extension of the FBT exemption for PHEVs – which is due to expire in April 2025 – to “help keep car costs down and therefore the cost-of-living for everyday Australians, reduce air pollution in our communities, and support our national goal of reaching net zero”.

“What this data shows is that without the FBT exemption, a whole lot of satisfied plug-in hybrid drivers would most likely still be driving less efficient, higher tailpipe emission cars,” he said.

“The FBT exemption makes it affordable and accessible for Australians to try a PHEV, and once they try it, they like it. The exemption is cutting thousands of dollars off the cost of owning and running a PHEV, and drivers are also appreciating the significant savings from reduced fuel consumption.”

Martin also pointed to the fact large electrified vehicles – particularly the Ford Ranger PHEV and BYD Shark 6 – are not widely available in EV form today.

“Australians prefer larger vehicles like dual-cabs and utes, but with few BEV options available today in the market, PHEVs offer a viable alternative,” he said.

“However, without incentives like the FBT exemption to boost affordability, many may stick with?older, less efficient, higher-emissions vehicles or not consider a lower-emissions vehicle for their next purchase, slowing efforts to decarbonise.”

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