Best hybrid company cars

Home > Industry Analysis > Content

【Summary】This article discusses the top 10 best hybrid company cars that combine an internal combustion engine with an electric motor, resulting in low CO2 emissions and tax benefits. These cars offer cost-effective running costs, driver appeal, and a generous specification. The BMW 330e and X5 are highlighted as examples, with the 330e offering tax-busting company car running costs and the X5 providing a powerful engine and low CO2 emissions.

FutureCar Staff Aug 14, 2023 9:49 AM PT

Combining a traditional internal combustion engine with an electric motor, hybrid cars are designed to reduce CO2 emissions and lower benefit-in-kind (BIK) tax bills. These cars offer the flexibility to cover long distances without the worry of running out of battery.

Both the self-charging and plug-in hybrid versions of these cars provide significant salary sacrifice savings compared to traditional petrol and diesel models, making them a popular choice for both individual users and fleet managers. In this article, we have compiled a list of our top 10 favorite hybrid models across various classes, ranging from rugged SUVs to fast sports saloons.

Although each model has a unique purpose, all of them offer a winning combination of cost-effective running costs, driver appeal, and generous specifications. Autocar's company car tax calculator can help you determine the exact amount you will pay for each make and model.

Don't let the sober-suited executive image fool you, the BMW 330e proves that you can have fun while driving a hybrid. It offers the same connected feel and composure as a conventional 3 Series but with the added benefit of lower tax costs for company car users.

The BMW 330e has a smaller battery compared to its rival, the Mercedes-Benz C-Class, allowing it to travel only 38 miles on electric power alone. With CO2 emissions of 30g/km, higher-rate earners will face a BIK rate of 12%, resulting in a tax bill of £2086 for the SE Pro model. However, the 3 Series offers versatility, with the option of Touring estate and xDrive four-wheel-drive versions for a slightly higher price.

The BMW X5 is a sports utility vehicle that combines luxury, refinement, and spaciousness into a high-end package with a touch of driver appeal. In its fourth generation, the X5 has become a well-rounded choice for many.

For company car drivers, the plug-in hybrid variant of the X5 offers the best engine option. It combines an electric motor with a 3.0-litre petrol straight six, delivering 387bhp and emitting only 27g/km of CO2. This results in a remarkably low 8% BIK rate. The cost difference between xLine and M Sport trims is negligible, but the xLine trim offers a more subtle look.

The BMW 545e aims to provide the best of both worlds by combining BMW's powerful straight six engine with a 107bhp electric motor, resulting in a combined output of 387bhp. Despite its weight, the 545e offers a similar level of driver engagement as a standard 5 Series and features a spacious cabin with premium high-tech elements.

For companies, the main concern with the 545e is its CO2 emissions, which stand at 39g/km (41g/km for the M Sport). This emission level attracts a 12% BIK score, resulting in a tax burden of £2868 for higher-rate earners. However, this is only slightly higher than the tax burden for a similarly equipped xDrive four-cylinder 530e.