Hybrid cars have been slowly making their mark on the automotive world over the last decade. With everyone looking to make a switch, they want to know what is the best option for them, and Driva is here to provide you with some guidance. 

We’re going to run through an updated list of the best hybrid cars in Australia. Some of these you’ll already know, and others you’ll have never heard of. Regardless, you’ll find the car you’re looking for by the end of this article!

Australian drivers are currently feeling the pinch at the petrol pump. And with rising fuel prices showing no signs of turning around to the record lows of 2020, many car owners are tossing up whether to make their next new car purchase an all-electric or a hybrid one. And the stats show that a lot of Aussie motorists are choosing to get out of their internal combustion engine cars and into something a bit more modern and better for the environment. Officially, sales of electric engine vehicles have been skyrocketing ever since 2021.

According to the Federal Chamber of Automotive Industries, 99% more plug-in hybrid vehicles (PHEVs) were sold in Australia in 2021 compared to 2020. Meanwhile, conventional hybrid vehicle sales (also known as self-charging hybrids) were up by 20% over 2020 sales.

Unlike plug-in hybrid cars, a self-charging hybrid doesn’t need to be plugged in to recharge a battery pack. Instead, it uses things like regenerative braking (friction produced by the electric motor when it’s not running) to not only slow down the car but also create kinetic energy stored in the battery pack.

The new models of hybrids are revolutionary as well as top-rated indeed.

This is good news for the planet and for the hybrid automotive industry alike, as increased consumer demand will further drive down the cost of these cars and put pressure on other car manufacturers to offer more hybrid options. 

If you are in the market for a new hybrid, this is the article for you. We have done all the required legwork in investigating the best options for Australian motorists, so you don’t have to. With this in mind, let’s turn the key in the ignition and accelerate into exploring the best hybrids in Australia for 2023.

As we gear up for an electrifying year ahead, our friends at ReDriven have teamed up with us to give you an exclusive sneak peek into the best hybrid and electric vehicles hitting Australian roads in 2023. This comprehensive video review dives deep into each model's features, performance, and innovations.

Kia Sportage Hybrid

$40,000 (Estimated)

Get ready because Kia is bringing the heat by introducing their rival to the Toyota RAV4 Hybrid with their Sportage Hybrid. This 1.6L turbocharged four-cylinder petrol engine and a 44 kw electric motor are ready to get you where you need to be in style. While we don’t know everything about the model grades for the hybrid powertrain, it’s safe to assume we’re in for a good ride with a car that looks as good as it drives. Look out for this model in the second half of this year because it’s going to be an in-demand hybrid vehicle.

Pros

• Spacious cabin with a lot of included tech.
• A great riding experience.
• Responsive option hybrid powertrain.

Cons

• The exterior styling might not be for everyone.

Honda CR-V Hybrid

Price: $31,610 (estimated)

Pros

• Decently priced.
• Great tech and safety features.
• Comfortable and stylish interior.

Cons

• It’s uncertain if it will have a third row of seating or not. 

Honda’s latest CR-V model has a hybrid powertrain option opening up new clients to this amazing vehicle. What does this new CR-V have to offer? It’s got high-tech features, a large cabin, a modernised interior, tons of safety features, and both an internal combustion engine and an electric engine. It’s a 1.5l turbo that sits in a big car in comparison to prior models. This is another great option from Honda that’s sure to fill the gap left by the Odyssey people mover. Of course, it’s yet to be known if this model will have a third row of seating. Let’s wait and see.  

Lexus RX Hybrid

Price: $87,500

Pros

• The cabin is among the best out there.
• It’s a gentle riding experience.
• The list of standard features is expansive.

Cons

• It’s going to take a moment to understand the infotainment section.

Lexus is bringing Aussie drivers a comfort-oriented people-haulier that’s got substance and style to spare. The RX hybrid is considered a luxury SUV that’s filled with premium features like the infotainment centre, cabin design, safety features, and fuel-efficient powertrains. The biggest complaint for this particular Lexus is that it’s not as agile as some of the other cars on this list, and cargo space is almost non-existent. Finally, understand that premium features mean a premium price tag. Overall, it’s a great car for those with bigger families.

Toyota Camry Hybrid

Pros

• Its relatively affordable price tag makes it accessible to a wide range of consumers.
• Outstanding fuel economy with 51 mpg in the city and 53 mpg on the highway.
• A combined 208 horsepower from a 2.5-litre four-cylinder engine and an electric motor.
• Offers a smooth and quiet ride, ideal for both daily commuting and long road trips.
• Features a well-appointed and spacious interior with the latest technology and safety features.

Cons

• Some drivers may find the handling a bit uninspiring compared to other vehicles in its class.
• The system can be somewhat complicated to navigate for new users.

Overall, the 2023 Toyota Camry Hybrid presents a strong option for eco-conscious consumers seeking a reliable, efficient, and comfortable vehicle, though it may have some limitations in terms of driving dynamics and infotainment system usability.

Mazda MX-30 Hybrid

Price: $65,490

Pros

• Nice cabin design.
• Stylish design.
• Interesting doors.

Cons

• Terrible range.

The Mazda MX-30 2023 hybrid is a somewhat disappointing entry from Mazda. The car is very eco-conscious, with the interior being the bulk of that aspect for the Mazda MX-30. Also, the price is pretty decent too. However, the range on this car makes it seem like it’s a first attempt back when hybrids were becoming a thing. If you are restricted to local travel, this might be the car for you. But long-distance travellers will find this car to be a bit disappointing. Beyond its low range, the driving experience itself isn’t great. It’s fine, just not great. Overall, it’s a Mazda, but it’s a far cry from what Mazda’s capable of. If you have range anxiety, avoid it.

Nissan Qashqai e-Power

Price: $54,190

Pros

• The e-Power tech is clever.
• Spacious cabin.
• The design of the vehicle is attractive and sleek.

Cons

• Could use more of a punch.

Another Nissan entry, the Qashqai e-Power, features another great design that echoes the cars of Nissan’s past while looking to the future. The interior is spacious, modern, and comfortable, with ample space for the driver and passengers. Even the boot space is decent. Under the hood, you’ve got a three-cylinder turbocharged 1.5-litre petrol engine and a 140kW electric motor with a promised range of 1000 km. The biggest complaint is that this car does lack a punch and it’s something you’ll feel while on the road.

Kia Sorento Hybrid

Price:  Starting from $66,750

Pros:

• The Sorento hybrid is very efficient. It gets great gas mileage and emits low emissions, making it a great choice for people who are looking for an eco-friendly vehicle.
• The Sorento hybrid has plenty of feature like heated seats, Bluetooth connectivity, and a sunroof.
• The Sorento hybrid is very spacious.

Cons:

• The Sorento hybrid variant is more expensive than the non-hybrid model. It's also not eligible for certain government incentives like the Federal Tax Credit.
• The Sorento hybrid doesn't have the same towing capacity as the non-hybrid model. 
• The Sorento hybrid version is only available in a few states.

The Kia Sorento Hybrid is a hybrid SUV that was released in Australia in 2020. It is a petrol-electric hybrid that is available in both front-wheel drive and all-wheel drive. The Sorento Hybrid has a 1.6-litre petrol engine and an electric motor. The battery for the electric motor is located under the floor of the boot. The Sorento Hybrid has a six-speed automatic transmission.

The Sorento Hybrid has a number of features that make it unique and one of the most popular hybrid cars in Australia. Firstly, the Sorento Hybrid has a sleek and modern design. The front of the SUV features Kia's signature 'tiger-nose' grille, and the LED headlights and daytime running lights give the Sorento Hybrid a distinctive look. The Sorento Hybrid also has 19-inch alloy wheels, privacy glass and roof rails.

Toyota RAV4

Price starting from $39,760

Pros

• The RAV4 starts at a relatively affordable price compared to its competitors, offering great value.
• Outstanding fuel economy with 41 MPG in the city and 38 MPG on the highway, ideal for eco-friendly drivers.
• Spacious Interior provides ample room for both passengers and cargo, enhancing comfort and practicality.
• Smooth Ride offers a comfortable driving experience, particularly on long journeys.
• Known for its reliability, making it a dependable choice in the hybrid car market.

Cons

• Lacks the power found in some other hybrid SUVs, which might be a drawback for those seeking a more robust driving experience.
• The infotainment system is somewhat outdated compared to newer models in the market.
• While it excels in fuel efficiency, its performance in terms of speed and acceleration may not match some of its rivals.

In summary, the Toyota RAV4 is a top contender for those prioritizing affordability, fuel efficiency, and interior space in a hybrid vehicle. While it may have some drawbacks in power and infotainment technology, its overall reliability and excellent fuel economy ratings make it an attractive option for environmentally conscious drivers and those looking to save on fuel costs.

Kia Niro Hybrid

Price starting at $44,930

Pros

• The hybrid version boasts a 50 mpg combined fuel economy, appealing to eco-conscious drivers.
• Ample interior space makes it an ideal choice for families or individuals needing room for passengers and cargo.
• Equipped with contemporary tech for enhanced driving and user experience.
• Available in both hybrid and plug-in hybrid versions, catering to different preferences.
• Its electric motor and 1.6-litre gasoline engine offer efficient and smooth performance.

Cons

• Some may find its acceleration slower compared to other vehicles in its class.
• Lack of an all-wheel-drive option might deter some potential buyers looking for this feature.

The 2023 Kia Niro stands out as a well-balanced hybrid car, combining practicality with green technology. Its attractive price point, great fuel economy, and spacious interior make it an excellent choice for those aiming to reduce their carbon footprint without compromising on comfort or style. While it may have some limitations in acceleration and drive options, its competitive price and impressive specifications position the Niro as a strong contender in the hybrid car market.

Hyundai Santa Fe Hybrid 

Pros:

• Fuel economy is improved over the conventional Santa Fe, with the hybrid model using around 8.5L/100km compared to the base model’s 9.8L/100km.
• The Santa Fe hybrid is a very smooth and quiet vehicle to drive.
• The addition of the electric motor assists the petrol engine, providing good acceleration.
• The Santa Fe hybrid comes with all the features and creature comforts that you’d expect from a luxury SUV, including a sunroof, heated seats and a premium sound system.

 Cons

• The Santa Fe hybrid is not currently available in Australia.
• Even if it were available, it would be quite a pricey vehicle, with a starting price tag of around $60,000.
• The Santa Fe hybrid is a bit of a heavy vehicle, which can impact handling and braking.

Diving deeper into the realm of hybrid electric vehicles, we've prepared a special treat for you. In collaboration with our partners at ReDriven, the esteemed car review influencers, we've created an exclusive video that offers an insightful walkthrough of the top hybrid electric vehicles available in Australia today.

Enjoyed the video? Let's delve into the specifics. Below, we've provided a comprehensive breakdown of each hybrid electric vehicle featured in the video. This will equip you with more granular details and insights into their performance, efficiency, and distinct features.

Toyota Corolla Hybrid

The Toyota Corolla Hybrid packs a fair bit of zip for a small hybrid. Plus, it also outshines the aforementioned Prius in the styling department. Not to mention its fuel economy. Achieving 3.5L/100km means it is one of the forerunners in fuel efficiency amongst the hybrid offerings on this list. 

Overall, the Corolla hybrid exhibits responsive power and smoothness while cruising around town at low-speed. It has no issues matching it with city driving conditions. However, its acceleration is a bit lacklustre when trying to get up to highway speeds. Which is pretty standard for hybrid fuel misers like this one.

The Corolla hybrid represents a leading option in the compact hybrid category, although it does leave a little to be desired when it comes to driving experience. The cabin feels tight and the brakes a little grabby under normal braking conditions. That said, for $30,795 you do get a reasonably well-appointed five door small family car that doesn’t cost an arm and a leg to run. So we tend to think of that as a win. And we’re not alone. Most car reviews peg the Corolla hybrid as one of the best cheap hybrid cars in Australia.

Mitsubishi Outlander Hybrid

This midsize SUV is a bit of an all-rounder and it certainly ticks a lot of boxes. However, it doesn’t really offer anything in the way of standout value or performance.

Costing slightly more than $50,000, the 2022 model Mitsubishi Outlander PHEV runs a plug-in hybrid system that will steer you through a modest 84 km before the 2.4-litre 98kW petrol engine kicks in. With two electric motors driving each axle (85kW at the front and 100kW at the rear), you can be sure that whilst you are in the SUV’s all-electric mode, the power from the hybrid powertrain will be transferred to the wheels smoothly and efficiently.

There just isn’t a lot of that electric power to go around. So, if you don’t require too much range or fuel economy out of your hybrid SUV, the Mitsubishi Outlander might be the vehicle for you. Overall, Mitsubishi lists fuel consumption at an impressive 1.6L/100km. And when the electric battery runs empty, the plug in hybrid system becomes just like a normal hybrid, only more sluggish. However, the fact remains that the Outlander hybrid is one of the most fuel efficient hybrid cars on Australian roads.

Toyota Yaris Cross Hybrid

At $32,200, the ZR-spec Yaris hybrid is priced scarily close to the Corolla hybrid. So what are you getting in this smaller, city-dwelling cousin to the Corolla? How about 16-inch alloy wheels, LED head and tail lights, and a blacked-out grill? And that’s just the outside. Under the bonnet, the hybrid Yaris sports a 67kW petrol engine ably supported by an electric motor combo powering the front wheels, capable of producing 59kW. Combined, Toyota claims this setup produces 85kW. Which is bang on for what this car is meant to be: a small and sporty city runabout.

Let’s talk about fuel consumption figures for a moment. Again, working from the official Toyota specs, the combined cycle is rated at 2.8L/100km. Which makes it one of the most fuel efficient small hybrids you can buy. 

Handling-wise, the car feels nimble and controlled. But when it’s time to overtake or power up a steep incline you will notice the bottom end lacks some torque. There are some prices that need to be paid for owning such a fuel-sipping new car after all.

Volvo XC40 Hybrid

The Volvo XC40 is all-class. Recent winner of the Small Car of the Year Award, the XC40 Recharge sure has a lot going for it. For starters, it’s got a brawny 1.5L three-cylinder turbocharged petrol engine capable of punching out 132kW. Volvo has added to this a 10.7kWh battery set-up as well as an electric motor that produces 60kW.

If you only need to go short distances, the XC40 hybrid has you covered as its electric-only range extends to 45km. And the car will even allow you to go up to 125km/h in this power mode! Overall, Volvo claims 2.2L/100km as the official fuel consumption figure. 

Precise and nimble are the two best words to describe how the XC40 hybrid handles. However, several car reviews have pointed out the brakes take some getting used to. That aside, its cabin is well put together and roomy and the finishes are what we have come to expect from the Swedish manufacturer. Overall, when it comes to choosing the best hybrid cars Australia has available, the XC40 Recharge sits near the top. 

BMW X3 Hybrid

BMW’s hybrid X3 is an awesome PHEV. But coming in over the 100k mark it's got an awesome price tag too. So, does the cost-for-benefit equation stack up?

Powered by a 2 litre four-cylinder petrol engine that is turbocharged, BMW has also integrated an 80kW electric motor. All up, this combination is good for 215kW. Which is a lot. And good enough to go from 0 - 100 km/h in 6.1 seconds.

BMW officially puts the X3’s fuel consumption at 3.2L/100km, which is a really good stat for a PHEV with this much grunt. However, multiple car reviews point out that it could benefit from a larger battery, as the car tends to chew through its battery power fairly quickly. Although, the good news is that it will only take you 3.8 hours to fully replenish the X3’s battery power.

Ride, handling, and comfort bear all the hallmarks of classic BMW quality in that they are all top-notch. The BMW X3 hybrid is a powerful prestige car that will save you money at the petrol pump in the long run. And that’s why we are happy to rate it as the second-best among hybrid electric vehicles in Australia.

Mercedes-Benz C-class Hybrid

With 100km of electric-only range, the Mercedes-Benz C-class PHEV maintains the ability to function as an electric vehicle for most of the time for most drivers. Plus, you get the option to transform it into a 230kW power sled with the push of a button. Under the hood, the C-class boasts a big 25.4kWh battery, an efficient and powerful 95kW electric motor matched with a 2L four cylinder turbocharged petrol engine. All of this means it packs quite a punch, especially from takeoff. Even running it as an EV alone, the C-class is good for a top speed of 140km/h. 

But how much does all this cost? For around $90,000 we think this represents amazing value. Yes, it is on the pricier side, but this is a car that will withstand the test of time both in styling and finishings, but also more importantly, as hybrid technology advances to catch up with this fine automobile. That’s why we are happy to declare it the best hybrid electric vehicle currently available on the Australian market.

Tucson Hybrid

The Hyundai Tucson Hybrid is a seven-seater hybrid SUV that is perfect for families who want to save on fuel costs. This SUV has a fuel consumption between 6.1L/100km and 6.3L/100km depending on the variant., which is impressive for a hybrid. The Tucson Hybrid also has a spacious interior and plenty of cargo space, making it a great vehicle for road trips and errands. The price of the 2024 Tucson Hybrid is expected to start around $46,900.

If you're looking for a hybrid SUV that can seat seven people, the Hyundai Tucson Hybrid is a great option. This SUV has a great fuel efficiency as well ad the capacity to sear 7 people, making it a great choice for families who want to save on fuel costs. The Tucson Hybrid also has a spacious interior and plenty of cargo space, perfect for road trips and errands. 

So there you have it, the best hybrid cars of 2023. If you’re interested in any of the above hybrid models, and you’re looking for a green car loan to help you finance it, you’ve come to the right place! Or if you're after a different type of vehicle we have a guide for that - be sure to check out The Best Australian Small SUVs in 2023 here.

To get your personalised quotes, simply head to the Driva Dash and fill out a few details about yourself and the type of car you’re looking to finance. This process takes just a couple of minutes and won’t impact your credit score. From there, you’ll be able to see all of your best loan options from our panel of more than 30 lenders. 

What's the downside of hybrid cars?

While hybrid electric vehicles are great, they’re not perfect. Just like combustion engine vehicles, they’ve got their ups and downs. Some of the downsides associated with hybrid vehicles are the following:

1. They aren’t as powerful as cars with a dedicated electric engine or gasoline engine.
2. They don’t handle as well because they’ve got more moving parts and additional weight which impacts performances. 
3. They can have higher running costs as you’ll need a mechanic who knows how to work on this type of vehicle, and parts can be costly. 

How does a hybrid car work?

Hybrid cars are powered by two sources. The first is an internal combustion engine, and the other is one (or several) electric motors that use battery-stored energy. The electric engines are charged through the internal combustion engine and regenerative braking. 

Is hybrid better than electric?

It’s not the fairest comparison right now, but you could argue against both being the better of the two. Electric vehicles are considered the future of cars, but the price for one is still high, and they’re not yet fully realised. Hybrids offer fuel savings, plug-in hybrid options, and the beauty of having an internal combustion engine and electric motor. It’s not perfect, but it’s one of the best options available for those looking to do some good for the environment and their wallets. At Driva we can assist with both green and electric car loan options from our panel of 30+ Aussie lenders to get you personalised rates in just minutes.

Learn more: The Best SUVs on the Australian Market

What should I consider when choosing a hybrid car?

When choosing a hybrid car, consider factors such as fuel economy, driving range, charging infrastructure, tax incentives, available models, and the environmental impact. It's important to evaluate your driving habits and preferences to find the best hybrid for your needs.

What is a plug-in hybrid electric vehicle (PHEV) and how is it different from a regular hybrid vehicle?

A plug-in hybrid electric vehicle (PHEV) is a type of hybrid that can be charged from an external power source, typically using a standard electrical outlet or a charging station. This allows PHEVs to operate in full electric mode for a limited range, offering the flexibility of both electric and hybrid driving modes.

What are the benefits of buying a hybrid electric car?

A: Buying a hybrid car offers benefits such as reduced fuel consumption, lower emissions, potential tax incentives, and in some cases, access to special carpool lanes or parking privileges. Additionally, hybrid cars contribute to environmental conservation and promote sustainability.

Are there luxury hybrid cars available in Australia?

A: Yes, there are luxury hybrid cars available in Australia, including models from brands like Lexus, BMW, and Mercedes-Benz. These vehicles offer a combination of advanced technology, luxury features, and eco-friendly performance.

Are there tax incentives for buying a hybrid car in Australia?

Yes, there are tax incentives for buying a hybrid car in Australia, including potential exemptions or reductions in luxury car tax, fuel-efficient vehicle incentives, and other government rebates aimed at promoting the adoption of eco-friendly vehicles. It's advisable to consult with local authorities or tax professionals to understand the available incentives.