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Originally published April 2024; updated October 2025
The plug‑in hybrid electric vehicle (PHEV) is evolving. Although the PHEV segment is still a shockingly small part of the US auto market, it has grown from just 1.4% of all sales in September 2021 to 2.4% in 2025. With several new models arriving in 2026, including the 2026 Toyota RAV4 Plug‑In Hybrid with a 50‑mile electric range and DC fast‑charging capability, the 2026 Kia Sportage PHEV in the compact‑SUV segment, and luxury PHEVs such as the 2026 Mercedes‑AMG E53 Hybrid Wagon, that share may rise even more.
Add to that exciting developments in the world of range-extended EVs (EREVs or REEVs), the march of electrification is taking a slightly different shape. Inflation‑weary consumers, shrinking new‑car incentives, and rising tariffs are all reasons that drivers may seek value in plug‑in hybrids now.
Dive deeper into PHEVs:
Plug-in Hybrids: Only as Green as their Drivers
Before getting into price and comparison details, let's look at the different types of hybrids.
What kind of hybrid?
Many car shoppers and drivers don’t realize that there are different types of hybrid electric cars. In fact, when I started to work in the field, it took me a lot of research to understand the difference between the two types.
Let me save you some time and break it down for you:
- Hybrid Electric Vehicles (HEVs) - This is the classic hybrid vehicle that’s been around since the first Toyota Prius. They have small batteries that add fuel efficiency and can occasionally propel the car for a mile or two. A subset of hybrids are mild hybrids, which has a battery that can’t actually propel the car. Hybrids and mild hybrids are not considered “clean vehicles'' because their batteries are too small to drive the car without the gas engine, and so they still emit tailpipe pollution. These vehicles cannot be plugged in. Instead, the small battery is recharged through regenerative braking and the internal combustion motor. HEV drivers still need to refill with gas, although less often than with a conventional combustion vehicle.
- Plug-in Hybrids (PHEVs) - What a difference one letter can make! Plug-in hybrids have two separate power sources and two separate motors that can work together in hybrid mode or separately in EV mode. The electric motor and the battery are large enough to drive in electric only mode, which means 30- 50 miles of all-electric, zero-emissions range for many PHEVs. But, the battery is often small enough to recharge with a standard, 120V household plug. Then, when the battery runs out of charge, PHEVs seamlessly switch to a gas engine. Range anxiety? - we hardly knew ya.
- Extended Range EVs (EREVs or REEVs) - What if you had an electric car that had a built in generator to recharge the battery when it got low? What if we told you that already exists? Enter the EREV, or extended range EV. This sort of drivetrain has existed going back to the Chevrolet Volt and BMW i3, but it's having a moment as the pace of electrification picks up. You start with a lithium ion battery that is larger than that of a PHEV, but smaller than one in a fully electric car. Then, you add a small gas generator that can recharge the battery, but can't actually turn the wheels. This means emission free driving, all the torque of a BEV, and zero range or charging anxiety. The only downside is that due to the larger batteries, EREVs might be pricier than their PHEV cousins.
Why plug-in hybrids?
PHEVs and EREVs can be a great introduction to electric vehicles. They address many of the concerns that new BEV drivers have about the leap to fully electric:
- No range anxiety. If you run out of battery, you have a gas engine to fall back on.
- No place to charge at home or on the go? You have a gas tank you can refill! This makes PHEVs great for apartment dwellers or people who live in charging deserts.
- Unable to spring for the high price of a fully electric car but want those sweet, sweet fuel savings? PHEVs are priced between gas cars and BEVs and you can still see major savings on gas. Drivers who use their PHEVs for local and daily drives can often go 1000s of miles on one tank -- so long as they charge between uses.
Clean Vehicle Cred
The often overlooked thing about PHEVs is that they are classified as clean vehicles and often qualify for local or state incentives. Savings may make a plug-in hybrid an affordable way to break into the electric vehicle world, even if you worry about range or don’t have a reliable home charger.
A bit more about EREVs
Whereas the all-electric range on most PHEVs tops out at around 50 miles (see our longest range PHEVs ), it may be well over 100 miles for an extended range EV -- all without any range anxiety. While this requires a larger battery than in a PHEV, thus increasing the price, it can be a lifesaver for certain customers without home charging or certain body types.
Automakers are particularly drawn to EREVs for trucks and large SUVs. As Ford CEO Jim Farley noted, battery-electric trucks have "unresolvable" economics due to their massive weight and cost. The Ram 1500 Ramcharger, for instance, offers the same 14,000-lb towing capacity as gas models while delivering 150 miles of electric-only range. This would be impossible to achieve economically with a pure EV.
BloombergNEF data from China (where EREVs are exploding in popularity) shows that the average EREV operates in electric mode more than 70% of the time. This suggests that with proper charging habits, EREVs could offer nearly all the environmental benefits of EVs while addressing the practical concerns that have slowed EV adoption.
Scout Motors' pre-order data tells a compelling story about EREV demand. According to crowdsourced tracking from the Scout EV Forum of over 1,000 early reservations, a striking 81-82% of customers chose the "Harvester" EREV option over the pure electric version. Interestingly, nearly half of these Harvester buyers already own EVs, suggesting the EREV formula resonates even with drivers already comfortable with electrification.
A bargain way to go electric
Since many US drivers don’t go more than 40 or 50 miles in a day, PHEV drivers may not need to fill up at gas stations very often. We have many drivers in the Recurrent community who report filling up their tanks only a few times a year, and doing “90% of my driving on pure electric.”
Another plus? PHEVs are a gateway to all-electric cars. In one survey, 70% of PHEV drivers consider a fully electric vehicle as their next purchase. As a Chevrolet Volt driver told Recurrent, the car is “...the best of both worlds, electric and conventional fuel. It allows you to slowly enter the world of electric cars.”
Where can you find attractive and inexpensive used PHEVs? Check the used market, where budget Chevrolet Volts and Toyota Prius Primes can be found. Also look out for an influx of Jeep Wrangler 4xe's and older luxury models from BMW and Mercedes.
If you’re looking for more recent model years, there are plenty of used Porsche Taycans and Chrysler Pacificas. A slew of new plug-in hybrids from Hyundai, Kia, and Volvo will hit the used market in coming years.
Gas vs. PHEV Price Comparisons (2025 Models)
The initial cost of a PHEV is certainly higher than the cost of a gas car or a traditional hybrid, but the savings pay off over the course of ownership. Consumer Reports finds that EVs and PHEVs have maintenance and repair costs that amount to half of those for a gas powered car:
- BEV (Battery-Electric Vehicle): $0.03/mile
- PHEV (Plug-in Hybrid Electric Vehicle): $0.03/mile
- ICE (Internal Combustion Engine): $0.06/mile
Jeep Grand Cherokee vs. Grand Cherokee 4xe
The gas-powered Grand Cherokee starts at $36,495, while the Grand Cherokee 4xe PHEV starts at $60,490 — a $23,995 premium (~66% more expensive)
At the top trim: The Summit Reserve gas model starts at $63,040 vs. the Summit Reserve 4xe at $79,150 — a $16,110 premium
Toyota RAV4 vs. RAV4 Plug-In Hybrid (formerly Prime)
The base gas-only RAV4 starts at $29,250, while the RAV4 PHEV (plug-in hybrid) starts at $44,265 — a $15,015 premium (~51% more expensive) and over $11,000 more than the regular RAV4 Hybrid
Chrysler Pacifica vs. Pacifica Hybrid PHEV
The Chrysler Pacifica Touring (entry-level gas model) is priced at $40,345, while the base Pacifica PHEV is $53,050 — approximately a $12,700 premium
Ford Escape vs. Escape Plug-In Hybrid
The 2025 Ford Escape Plug-in Hybrid has a starting price of $39,895 while the gas Escape starts around $30,000-31,000, making the PHEV premium approximately $8,000-10,000
Why do automakers like PHEVs?
With just over 2% of the market, consumer demand for PHEVs may not be enough to make them take off. Rather, traditional auto manufacturers have their own reasons to love and promote plug-in hybrids:
- EV-anxious drivers love them and having a good line of PHEVs can build a loyal customer base (think: Prius Prime and Chevy Volt)
- PHEVs use existing manufacturing facilities and supply chains, letting OEMs play to their strengths and use the plants they have already invested in.
- Less battery material is required for a PHEV than a BEV, meaning that more cars can be made with fewer critical minerals.
Finally, PHEVs are a great way to compete with the Cybertruck-shaped elephant in the room: Tesla. Although Tesla still makes up the lions share of EVs on the road - both new and used - the company has zero presence in the hybrid market. Finally, traditional OEM have an electric arena they can compete in.
PHEV Drawbacks
Nonetheless, there are a few drawbacks to PHEVs. According to Recurrent drivers, the biggest complaint is the limited all-electric range!
Another issue is reliability, which Consumer Reports found to be worse than any other vehicle type, with “more than double the problems of conventional vehicles.” This is because they have both a conventional and an electric motor, which must work harmoniously.
Finally - there are many studies that show PHEVs may not be as clean as they seem. The culprit: many drivers don’t really plug them in. Stay tuned for a deep dive on the dark side of PHEVs.
