Top 10 best hybrid company cars 2021
Hybrid cars are heavily favoured by UK company-car tax rules, so choosing one could save you a lot of cash. These are the best hybrid company cars to buy in 2021
Hybrid and plug-in hybrid (PHEVs) cars are here to stay, and it’s easy to see why. These electrified models are not only more efficient than purely petrol or diesel-engined cars, they’re also brilliant for everyday driving thanks to their quiet, smooth electric motors.
It used to be the case that diesels, with their low CO2 emissions figures, were the models favoured by the UK's company-car tax system, but those days are over. It’s now the turn of the hybrid to dominate the company car-park. All electrified cars, including purely electric models, make great fleet cars, as the cost less to both tax and fuel in the long run.
And it’s not just lower Benefit-in-Kind (BiK) tax rates that make them such good company cars. Running costs in general should be lower, plus drivers get to enjoy electric power, which is great for commuting and really easy to live with.
Read on to find out more about the best hybrid company cars to buy in 2021, including our favourite models from a variety of sectors and across different price points. You can read more about each model in their respective in-depth reviews, too. If you'd prefer a purely electric company car, read our guide to the best picks here – and don't forget to follow DrivingElectric on Twitter, Facebook, Instagram and YouTube for the very latest.
The BMW 3 Series has been among the very best executive cars since its inception in the late 1970s. So it comes as no surprise that the latest version – complete with its plug-in hybrid powertrain – is one of the most entertaining and cost-effective company cars you can run. The previous-generation 330e only offered a modest electric range, but the latest one is capable of going for up to 37 miles without waking the petrol engine. The boot is slightly smaller than in the purely petrol or diesel derivatives, but the cost savings will outweigh this small compromise for many company-car drivers. Plus, a 330e Touring estate version (pictured above) is offered for those who need to carry more. Read our full review here.
As far as company-car tax goes, the BMW 530e plug-in hybrid is at the pricier end of the scale. There’s no getting away from the high list price, but you’re getting a very capable executive car for your money: 0-62mph takes just 6.2 seconds and you’ll enjoy the limousine-like luxury offered by all 5 Series models. An update in 2019 saw the 530e get a little extra electric range, plus the option of xDrive four-wheel drive. The standard model will now do 41 miles on electric power thanks to its slightly larger battery. Read our full review here and check out the more powerful 545e version, too.
Ford Kuga Hybrid
The newest Ford Kuga is the best yet, and the great news for company-car drivers is that the plug-in hybrid version is really cheap to tax. There’s also a regular hybrid model, and while it’s not quite as competitive on tax costs, it’s a cheaper car overall and you don’t need to have a home or work parking space with access to a charger to make the most of it. The Kuga has a nicely integrated hybrid powertrain and (in the plug-in) a decent electric range of 35 miles, plus it’s really spacious inside and good to drive. It’s got lots of standard equipment, too, and while the interior isn’t the most exciting place to be, it’s comfortable and easy to live with. Read our full reviews of the Kuga Plug-In and Kuga Hybrid for more.
Kia Niro PHEV
Kia offers no less than three different Niro models, so there should be something to suit all driving styles and budgets. We love the fully electric e-Niro and while the standard hybrid is great for those without access to a charging point, the plug-in is the one that can help company-car drivers save substantially on tax. Its 30-mile electric range can’t match that of the Mercedes below, but it does have a lower list price, which means a lower P11D value and thus slightly lower monthly BiK payments. Read our full review here.
Mercedes A 250 e
The Mercedes A-Class frequently features among the UK’s best-selling cars, and the introduction of a plug-in hybrid model has cemented the hatchback’s place near the top of that list. Don’t be put off by the fact it’s only available in top-spec AMG Line trim – this gives the BMW 1 Series and Volkswagen Golf rival a sporty look, with loads of the kit that so many company-car users desire. A 44-mile electric range means those covering short distances with regular access to a charging point could effectively run the A 250 e as a pure-electric car – relying on the petrol engine for longer journeys or motorway driving. Read our full review here.
Mercedes E 300 de
One of our favourite hybrid company cars is the Mercedes E 300 de plug-in hybrid. It’s quite unusual in that instead of using petrol power, the E 300 de has a 2.0-litre diesel engine paired with a powerful electric motor (although there's an E 300 e petrol-electric version, too – we've compared the two here). That means even when the battery is depleted, you still benefit from more than 40mpg fuel economy. The E 300 de has all the luxury features of the standard E-Class, wrapped up in your choice of a saloon or estate body. An E 300 de might cost a few hundred pounds more than a BMW 530e in BiK, but you’ll save substantially on fuel costs if you regularly run the diesel engine on longer journeys. The choice on offer, combined with potentially unbeatable running costs, makes the E-Class a top hybrid company car. Read our full review here.
Peugeot 508 Hybrid
A worthy alternative to some of its compact executive rivals from BMW and Mercedes, the 508 is a left-field choice that's stylish inside and out, as well as being very efficient. It features a well integrated hybrid system with a claimed electric range of up to 39 miles. It makes a lot of sense on the company-car front thanks to its low BiK rating, while the fact that the 508 is a comfortable, refined and uniquely designed alternative to the relatively unimaginative mainstream is something of a bonus. Read our full review here.
SEAT Leon e-Hybrid
Based on the same platform as the Volkswagen Golf GTE and Skoda Octavia iV, the Leon e-Hybrid offers a sporty yet sensible take on the plug-in hybrid recipe. Power comes from a 1.4-litre petrol engine and an electric motor, with a 13kWh battery offering up to 40 miles electric range. With a BiK rate of just 7%, there's plenty to attract company-car users looking for a lower-cost alternative to the Golf, which sits in the 11% bracket. To us, the SEAT offers much better value, feeling closer to its VW sibling than ever in terms of quality and driving experience. Read our full review here.
Skoda Superb iV
If space is a major consideration, but you don't want to pay over the odds for the privilege, the Superb iV makes a lot of sense as a company car. Its plug-in hybrid drivetrain is much the same as you'll find in the SEAT Leon above, with the same 1.4-litre petrol engine and 13kWh battery offering a similar 35-mile range. The difference here is that it's fitted to a much larger and more practical car, complete with massive boot and acres of rear legroom. BiK is low, too – entry-level cars sit in the 11% band, meaning manageable payments for 20% and 40% taxpayers. In fact, payments will be lower than an equivalent large executive saloon, as the Superb boasts a considerably lower list price. Read our full review here.
Volkswagen Passat GTE
Whether you want the executive class of a saloon or the space and practicality of an estate, the latest Passat GTE aims to cover all bases. We love its classy interior and refined driving experience, while the 36-mile electric range should be more than enough for drivers looking to commute without using a drop of petrol. With a BiK rating of 11%, the Passat is an alarmingly affordable company car. Read our full review here.
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