Hybrids holding their value much longer than EVs – report

New analysis of the UK market from Cox Automotive Europe shows that in July 2025, hybrid vehicles under 24 months old held 68 per cent of their original cost new (OCN), down 22 per cent since their peak in November 2022.

According to Cox Automotive, electric vehicles of the same age dropped by nearly twice as much in July, to 49 per cent.

Philip Nothard, insight director at Cox Automotive Europe commented: “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.”

Cox Automotive suggests that recent policy shifts may challenge this trend, adding that new tax changes have reduced the incentives for drivers to choose hybrid vehicles.

In April this year, UK owners of hybrid cars registered after 2017 now pay the same vehicle tax rates as petrol and diesel vehicles. Further, the Zero Emission Vehicle Mandate will see the sales of these cars phased out by 2035.

Despite this, Cox Automotive points out that hybrid vehicles continue to grow in popularity in the UK. New consumer data from Regit and Cox Automotive reveals that almost one in three (29 per cent) of drivers are considering hybrid for their next vehicle purchase.

Latest new car registration data from the UK’s SMMT also shows that year-to-date, PHEV registrations are up by 31.5 per cent and HEV is up by 6.5 per cent.