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The hype around hybrid vehicles

08 September, 2025
3 min

Discover the ins and outs of hybrid vehicles with our deep dive on what they are, how they work, and whether they can reduce your environmental impact.

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The overuse of fossil fuels in the automotive industry is a growing concern, prompting countries to accelerate (pardon the pun) the adoption of more eco-friendly and energy-efficient vehicles. In this article, we dive into one of the more popular options for drivers – hybrid electric vehicles – to help you understand what they are, how they work, and if they really can assist in reducing CO2 emissions.

    What is a hybrid vehicle?   

    A hybrid vehicle runs on fuel and electric power by combining an internal combustion engine (ICE) with an electric motor. Offering the best of both worlds, these vehicles work by using power from the electric motor up to a specific range (usually around 50km), before flicking over to the combustion engine to travel the rest of the way. This helps achieve greater fuel economy than traditional ICE vehicles, especially if you only drive shorter distances. There are two main types of hybrid vehicles: plug-in hybrid electric vehicles and non-plug-in hybrid electric vehicles.

    What's the difference between plug-in and non-plug-in hybrids?

    Both vehicles will still require you to fill up your fuel tank at the petrol station, but the key difference between the two is the way the electric motor is charged.

    Plug-in hybrid electric vehicles (PHEVs)

    The car’s battery can be charged either by plugging into an external electricity source or through regenerative braking, which is where the energy that is created from applying the brakes gets transformed into electric power that charges the car.

    Non-plug-in hybrid electric vehicles (HEVs)

    Unlike the plug-in hybrid, HEVs can’t be plugged into an electricity source to charge up the electric motor. These vehicles rely purely on the regenerative braking system to recharge the battery, which again, is achieved by capturing energy from the combustion engine and converting it into electricity.

    Are hybrid vehicles better for the environment?

    Some research1 suggests that battery and plug-in HEVs have a positive impact on reducing CO2 emissions because they require less fuel than traditional combustion engine vehicles. Meanwhile, others, such as a 2017 study2 conducted in Japan, suggest that when people have access to HEVs, they drive more, which ultimately increases emissions. 

    There are two key things we take away from conflicting research like this:

    1. Results in previous literature really depend on how the variables are tested and measured. For example, different countries, car models, driving distance, outputs and methods of analysis will all play a role in what insights are revealed. However, with all that said, the general consensus is that HEVs are less harmful to the environment when compared to petrol/diesel vehicles, but not as effective as battery electric vehicles in reducing CO2.

    2. Because hybrid vehicles still consume fossil fuels, but consumption is quite low3 your personal impact on the environment will likely depend on the model of car you’ve chosen, how far you typically drive it, and how often you drive.

    Things to consider before buying a hybrid vehicle

    Considering the research and what we know about the range that hybrid models typically travel on battery power, you may like to consider the following when deciding whether a hybrid car is right for you and your lifestyle:

    • how often and far you tend to drive
    • whether you have the time and ability to charge your vehicle from home
    • if you want to drive a vehicle that’s entirely carbon free, or one that simply produces fewer emissions than ICE vehicles. 

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    1 Huang, Y., Surawski, N. C., Organ, B., Zhou, J. L., Tang, O. H., & Chan, E. F. (2019). Fuel consumption and emissions performance under real driving: Comparison between hybrid and conventional vehicles. Science of the Total Environment, 659, 275-282.

    2 Mishina, Y., & Muromachi, Y. (2017). Are potential reductions in CO2 emissions via hybrid electric vehicles actualized in real traffic? The case of Japan. Transportation Research Part D: Transport and Environment, 50, 372-384. 

    3 Pata, S. K., Erdogan, S., Pata, U. K., & Meo, M. S. (2025). Greening road transport: Comparison of technologies in conventional, hybrid, and electric vehicles. Journal of Environmental Management, 380, 124908.

    All content on the NRMA Insurance Blog is intended to be general in nature and does not constitute and is not intended to be professional advice.

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