UK 'risks Dieselgate 2.0' as drivers set to fork out billions for expensive plug-in hybrids

Experts have warned that the UK could face a "Dieselgate 2" scandal with policy changes incentivising the purchase of new plug-in hybrids.

New analysis has warned that the Government's decision last year to weaken electric car sales could cost British drivers £13.8billion by encouraging the sale of plug-in hybrids.

It comes as reports suggest that Labour is planning to cut electric targets once again, as it takes aim at the Zero Emission Vehicle (ZEV) mandate.

The targets state that manufacturers must have electric vehicles make up at least 33 per cent of total sales by the end of the year, with targets rising every year.

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Labour is believed to be planning to cut the 2030 target from 80 per cent of car sales to just 50 per cent amid pressure from businesses, automakers and unions.

However, data from the Energy and Climate Intelligence Unit (ECIU) warns that drivers could be charged more to run their vehicles if they are incentivised to invest in plug-in hybrids.

Since the Government weakened EV targets in April 2025, plug-in hybrid sales have grown by 39 per cent over the last year, despite experts warning that it could have a knock-on effect on EV sales.

The ECIU highlighted how there is now an increased number of cars on the road with expensive running costs as plug-in hybrid owners remain at the mercy of fuel prices.

The Iran war has caused global oil prices to soar since the end of February, placing PHEV owners in the firing line to pay the highest fuel costs in more than three years.

Data from the ECIU noted that plug-in hybrids are an average of 10 per cent more expensive to buy than an electric equivalent.

Some of the nation's best-selling plug-in hybrids cost more than £1,000 more to own and run than an EV, especially when considering soaring fuel prices.

Colin Walker, Head of Transport at the Energy and Climate Intelligence Unit, said: "Dieselgate saw a number of car manufacturers cheat on their emissions tests, but this time it could be both Government and car companies implicated in a scandal.

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"The Government is incentivising manufacturers to sell more plug-in hybrids, despite knowing that they don't come close to delivering the fuel and emissions savings that are promised of them in the real-world.

"This could result in hundreds of thousands of British drivers paying hundreds, if not thousands, of pounds more every year to own and run these vehicles in the midst of a cost-of-living crisis."

He also highlighted the impact of fine particulate matter that is produced from plug-in hybrids, which will undermine the impact of efforts to improve air quality.

Almost 40,000 new electric cars were sold in May, representing an impressive 34 per cent growth in year-on-year sales, while petrol and diesel registrations continue to decline.

The ECIU noted that any changes to the ZEV mandate would come at the wrong time as several manufacturers develop their electric car-building ability across the UK.

Nissan is currently building the third-generation electric Leaf in Sunderland, Jaguar Land Rover is retooling its factory to produce its new range of EVs, and Stellantis has invested heavily in Ellesmere Port to produce electric vans.

Mr Walker added: "The ZEV mandate is working. As manufacturers compete to hit their sales targets, prices are coming down - accelerating sales as more drivers seek to shield themselves from high pump prices.

"The manufacturers calling for a watering down in favour of PHEVs, like Toyota, have been slow to transition to EVs, but the UK is only one of many markets they sell to, so this is a much wider problem for them as the world increasingly makes the shift to electric cars."

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