What is the difference between HEVs, EVs and PHEVs?

What is an HEV?

Hybrid Electric Vehicles (HEVs) are gaining popularity among drivers seeking fuel-efficient and environmentally friendly transportation options. But what exactly is an HEV, and how does it compare to other vehicle types? Let's explore the differences between Internal Combustion Engine (ICE) vehicles, Electric Vehicles (EVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs) to help you determine which suits your needs best.

Internal Combustion Engine (ICE) Vehicles

• How They Work: Good old-fashioned petrol or diesel engines—no electric motor, no battery, just the roar of the engine and a visit to the petrol station more often than you’d like.
• Fuel Efficiency & Emissions: Typically, ICE vehicles have lower fuel efficiency and higher CO₂ emissions compared to their electric counterparts.
• Electric Car Discount Eligibility: Not eligible. ICE vehicles are definitely not getting any love from the taxman. No electric car discounts or tax benefits here.

Electric Vehicles (EVs)

• How They Work: EVs are fully electric, operating without a petrol or diesel engine. They are powered by batteries charged through external power sources.
• Fuel Efficiency & Emissions: EVs produce zero tailpipe emissions, making them the most environmentally friendly option. Plus, they’re easier on the wallet thanks to cheaper electricity compared to fuel.
• Electric Car Discount Eligibility: Eligible. EVs qualify for the Electric Car Discount, offering tax savings and GST benefits.

For more information on EV environmental impact, refer to the Australian Government's Green Vehicle Guide.

Plug-in Hybrid Electric Vehicles (PHEVs)

• How They Work: PHEVs combine an electric motor with a petrol or diesel engine. They can be plugged in to charge the battery but also use fuel when the electric range is exhausted.
• Fuel Efficiency & Emissions: Lower emissions than ICE vehicles but not as clean as full EVs. PHEVs are great for long-distance trips—no need to panic about finding a charging station in the middle of nowhere.
• Electric Car Discount Eligibility: Eligible until April 1, 2025. PHEVs are getting the boot from the Electric Car Discount after this date. If you want one, better get in quick! Learn more about this change from the Australian Taxation Office.

Hybrid Electric Vehicles (HEVs)

• How They Work: The middle child of the electric car family. HEVs combine a petrol or diesel engine with an electric motor charged through regenerative braking. They don’t plug in—no wall socket needed.
• Fuel Efficiency & Emissions: More fuel-efficient and lower emissions than ICE vehicles but not as green as EVs or PHEVs. They’re great for stop-and-go city driving.
• Electric Car Discount Eligibility: Not eligible. HEVs are not feeling the love from the Electric Car Discount, no plugging in, no discount.

Making it simple.