Recent data from Cox Automotive has highlighted that hybrid vehicles are demonstrating a notable capacity to preserve their value during periods of market instability.

In a comparison from November 2022, the difference in residual values between hybrid and electric vehicles (EVs) was marginal, with hybrids at 90% and EVs at 88%.

Fast forward to July 2025, and the scenario shows hybrids less than two years old maintaining 68% of their original cost new (OCN), a 22% reduction, whereas EVs of comparable age witnessed a sharper decline to 49%.

The ability of hybrid vehicles to sustain their value is particularly striking in light of recent legislative adjustments that have affected the financial benefits of owning a hybrid, the company said.

Since April, hybrid car owners with vehicles registered post-2017 are now subject to the same vehicle excise duties as those applied to petrol and diesel cars.

Moreover, the Zero Emission Vehicle Mandate is set to gradually eliminate the sale of hybrid vehicles by 2035.

Despite these developments, the UK market’s interest in hybrid vehicles has not waned. Joint research from Regit and Cox Automotive shows that 29% of drivers are considering a hybrid for their next car purchase.

This is corroborated by the latest statistics on new car registrations, which indicate a 31.5% increase in PHEV [plug-in hybrid electric vehicle] registrations and a 6.5% increase in HEV registrations on a year-to-date basis. 

Cox Automotive Europe insight director Philip Nothard said: “Hybrid vehicles offer drivers an alternative, cost-effective solution for buyers who want to transition to a more sustainable form of transport but have concerns around range or infrastructure.

“This is driving demand for them in the used car market, which helps support stronger residuals. Additionally, these vehicles have a lower cost of entry than their electric equivalents, which means they hold their value better when entering the used market.”

Regarding hybrid vehicles, Nothard added: “They deliver a clear lifetime cost advantage over internal combustion and electric vehicles, making them an attractive option for buyers hesitant or cautious about making the full electric transition. Yet, evolving government policy could undermine this potential if hybrid ownership becomes less financially viable.”