Top 10 best hybrid company cars 2023

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 2023

best hybrid company cars 2023

Hybrids and plug-in hybrids (PHEVs) have replaced diesels as the go-to company car choice for those not yet ready for an electric car. Primarily because plug-in hybrids emit less CO2 than the equivalent diesel, which translates to lower BiK (Benefit-in-Kind) tax rates. Plus, hybrids offer better fuel economy and their quiet, smooth electric motors make everyday driving more relaxing, while providing a taste of EV ownership.

All electrified cars, including fully electric models, make great fleet cars, as they cost less to both tax and fuel in the long run. Though not as cheap to run as an EV, a plug-in hybrid could slash your tax bills by two-thirds compared to a similar diesel. 

As the name suggests, you’ll still need to charge a plug-in hybrid to get the best fuel economy possible. But do so and you can enjoy dozens of miles of pure-electric driving, which is great for commuting and really easy to live with. Plus you’ve still got the back-up of a petrol or diesel engine for longer journeys. So here are our top picks for the best hybrid company cars on the market right now:

Best hybrid company cars on sale now

  1. Mercedes C 300 e
  2. BMW 330e
  3. BMW 530e
  4. Kia Sportage PHEV
  5. Lexus NX 450h+
  6. Mercedes A 250 e
  7. Mercedes E-Class
  8. Skoda Superb iV
  9. Peugeot 508 Hybrid
  10. Volvo V60 Recharge

If you like the idea of an electric company car, check out our in-depth review of the BMW i4 – the winner of our Best Electric Company Car award for 2023 – and don't forget to follow DrivingElectric on TwitterFacebookInstagram and YouTube for the very latest news and reviews.

1. Mercedes C 300 e

The Mercedes C-Class has long been a favourite with company car drivers, and the plug-in hybrid version, called the C 300 e, is our top pick for a plug-in hybrid company car. It can cover an impressive 70 miles on electric power according to Mercedes, while a CO2 emissions figure of just 13g/km means an 8% BiK rate. When the plug-in C-Class’s battery is out of juice, the 201bhp 2.0-litre four-cylinder petrol engine under the bonnet is refined and quiet for longer journeys. The interior also features styling cues from the flagship S-Class and EQS executive limousines, and overall is a very nice place to be. Boot space is down compared to the standard C-Class, but there is a C 300 e estate if practicality is key for you. 

Read our full Mercedes C 300 e review to find out more.

2. BMW 330e

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. There's also a 330e Touring estate version (pictured above) and a recent refresh brought with it a styling refresh and a new dual-screen infotainment system. 

Read our full BMW 330e review to find out more.

3. BMW 530e

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, or our review of the 530e Touring estate, and check out the more powerful 545e saloon version.

4. Kia Sportage PHEV

A 43-mile electric range, generous 540 litres of boot space and show-stopping looks helps the Kia Sportage PHEV stand out in the crowded plug-in hybrid market. As well as being spacious and well-built, the Sportage’s cabin also features the intuitive dual-screen infotainment setup from the flagship Kia EV6. The first-ever plug-in hybrid Sportage can also return up to 252mpg, according to Kia, and is a decent motorway cruiser when the petrol engine kicks in. Kia’s famous seven-year/100,000-mile warranty and a long list of safety kit is just icing on the cake.

Read our full Kia Sportage PHEV review to find out more.

5. Lexus NX 450h+

Lexus' reluctance to embrace plug-in hybrid technology and stick with its proven 'self-charging' hybrids was beginning to hold the Japanese brand back in the battle for sales with BMW and Mercedes. Now, though, it has made the leap with the latest generation of its popular NX mid-size SUV, which boasts an impressive 40-mile electric range, typically angular Lexus styling and rock-solid build quality inside and out. Lexus has fixed its previously terrible infotainment system, as well. If you'd rather sit and relax instead of attacking the bends like a BMW driver, it could be just the ticket.

Read our full Lexus NX 450h+ review to find out more.

6. 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. The A-Class hybrid is available as either a hatchback or a saloon, but we’d choose the hatch for its more versatile boot. 

Read our full Mercedes A 250 e review to find out more.

7. Mercedes E 300 e / E 300 de

The hugely capable Mercedes E-Class PHEV is available in many forms, with either a petrol or diesel engine, and as a saloon or an estate. The diesel-powered E 300 de in particular 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. Whichever model you go for, the E-Class PHEV rewards you with a comfortable ride, smart looks, excellent technology and impressive fuel economy.

Read our full plug-in hybrid Mercedes E-Class review to find out more.

8. 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 many other Volkswagen Group PHEVs, with the 1.4-litre petrol engine and 13kWh battery offering a 35-mile pure-electric driving range. The Superb pairs the proven powertrain with a massive boot and acres of rear legroom. BiK is low, too – entry-level cars sit in a pleasingly low 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 Skoda Superb iV review to find out more.

9. Peugeot 508 Hybrid 

A worthy alternative to some of its compact executive rivals from BMW and Mercedes, the Peugeot 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 Peugeot 508 Hybrid review to find out more.

10. Volvo V60 Recharge

This position on the list could easily be occupied by any of Volvo's current 'Recharge' plug-in hybrid models, but we've gone for the V60 Recharge, as it embodies all that's great about the boxy Swedish estates of old, while bringing the formula right up to date in terms of styling, quality and technology. While it's still not as keen-handling as a BMW 3 Series Touring, the V60 is a fine drive nonetheless, with startling performance thanks to its healthy 345bhp power output. Fuel economy is also impressive, as is the plug-in estate’s 54-mile range.

Read our full Volvo V60 Recharge review to find out more.

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