Mild Hybrid 2025: Advantages and disadvantages, subsidies and savings
- Silvia Josten
- May 19
- 7 min read
Updated: 9 hours ago
For many, electromobility is a new technology that is still viewed with skepticism. An electric car isn't an option for everyone today – for example, because they drive a lot of long distances, there isn't yet an appropriate charging infrastructure in their area, or they want to wait for further technological developments. We are in the midst of a transport revolution with new vehicles that promise lower fuel consumption and lower emissions. 48V mild hybrids are gaining interest in this transition phase to electromobility. But do hybrid vehicles really deliver the benefits promised by manufacturers? We explain what you need to know: the differences, costs, advantages, and disadvantages. Is a mild hybrid worth it?
What is a mild hybrid? – Definition and how it works
Mild hybrids, or MHEVs for short (mild hybrid electric vehicles), make conventional combustion engines significantly more efficient with minimal effort. While driving, the combustion engine vehicle recovers kinetic energy during braking through recuperation and stores it in a 48V battery. The energy thus generated supports the engine drive and the 48V electrical system. This reduces fuel consumption and thus lowers CO2 emissions, according to the manufacturers' promise.
Due to their reduced fuel consumption, mild hybrids are not only better for the environment compared to full combustion engines, but also for your wallet. These hybrid vehicles save over 1,500 liters of fuel over a lifetime of 150,000 km compared to a conventional combustion engine (with an average consumption of 7 l/100 km), assuming a lot of city driving. This can mean up to 3.5 tons less CO2 emissions and at least €2,000 in savings at the gas station.
In order to achieve climate targets, mild hybrids are a key component for car manufacturers in order to provide their still hesitant customers with a suitable range of products.
Differences between mild hybrids and full and plug-in hybrids
All three different drive concepts have an electric motor on board – but they differ primarily in terms of the primary energy source, the voltage level and the electric driving functions.
Mild hybrid
In a mild hybrid , the combustion engine is the primary drive, while the electric motor serves primarily to increase efficiency. Purely electric driving is not possible. In hybrid cars, the electric motor charges the drive battery, eliminating the need for external charging.
Full hybrid
The full hybrid is based on the same principle: The vehicle runs solely on combustion fuel, but an electric motor recovers kinetic energy during braking and makes it available again later thanks to a larger battery. This allows short distances to be driven purely electrically.
Plug-in hybrid
A plug-in hybrid has two fully-fledged motors – a combustion engine and a high-voltage electric drive. This "dual motorization" and the larger battery drive up costs and weight. However, purely electric driving of around 40 to 60 km is realistically possible. The battery is charged via a separate charging port with a low charging power.
electric car (BEV)
The battery-powered electric vehicle (BEV) operates entirely without a combustion engine, but requires significantly larger batteries. Charging is done via a wallbox at home or at a growing network of public charging stations.
What are the advantages of recuperation in an electric vehicle?
A key efficiency advantage of electric cars is so-called recuperation – the recovery of energy during braking or coasting. While conventional combustion engines convert the kinetic energy generated during braking into unused heat, an electric vehicle can partially recover this energy and feed it into the drive battery.
Regenerative braking not only increases the range of an electric car but also reduces wear on the mechanical brakes, saving maintenance costs in the long run. Energy recovery can offer significant benefits, especially in city traffic or on journeys with frequent braking phases – up to 20–30% of the otherwise lost energy can be reused.
Optimal recuperation occurs with one-pedal driving : Many modern electric vehicles allow comfortable driving with just one pedal thanks to adjustable recuperation levels. When the accelerator pedal is released, the vehicle decelerates automatically, often eliminating the need for conventional braking.
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Advantages of mild hybrid vehicles: powerful drive, lower fuel costs
Upgrading a conventional combustion engine to a 48V mild hybrid offers the driver a significant increase in performance. The increased torque enables dynamic and powerful handling. Due to their lower fuel consumption compared to combustion engines, mild hybrids are not only better for the environment due to their low CO2 emissions, but also for your wallet: the reduced fuel consumption is also noticeable when refueling.
Drivers of mild hybrid cars need not fear range anxiety, because these vehicles, in their combination of tried-and-tested and new technology, promise an increased range, purely mathematically, resulting from electric and combustion engine drive.
Mild Hybrid Disadvantages: limited electric range, higher costs, poor environmental performance
While this is an advantage of hybrid technology, it also represents a significant disadvantage: A hybrid is only partially environmentally friendly, as it still uses a combustion engine as the main drive, thus producing harmful CO2 emissions. When driving at a constant speed on the highway, the increased vehicle weight also negatively impacts fuel consumption, increasing it. Hybrid technology can only have an effect on city driving with frequently changing acceleration patterns.
"A mild hybrid is a combustion engine vehicle with an electric boost so you can accelerate faster at traffic lights."
In addition, the electrical effectiveness is very limited, as the electric drive only acts as a support. The integration of two different drive motors (combustion engine and electric motor) requires increased technical complexity of the vehicle. In addition to a higher purchase price, this also requires more complex maintenance and the vulnerability of the installed components, which leads to higher maintenance and repair costs. In addition, the installation requires more space – space that is lacking elsewhere in the interior or in the trunk.
It's actually also wrong to classify mild hybrids as hybrid vehicles, as they can never be powered solely by electricity. The emission reduction is often so small that the environmental impact is negligible and can be considered greenwashing .
Ultimately, the poorer environmental performance leads to the discontinuation of financial incentives. In Germany, the environmental bonus as a state subsidy for hybrid vehicles was therefore discontinued as of January 1, 2023.
Now the question arises: which tax benefits currently apply?
No tax benefits for company car owners
Although there is no longer a purchase bonus through an environmental bonus, employees at least benefit from company cars with electric drives.
Employees who receive a fully electric company car from their employer benefit from an attractive tax advantage compared to vehicles with combustion engines. If an electric vehicle with a gross list price of up to €70,000 is used, the so-called 0.25 percent rule applies. In this case, the monetary benefit for private use of the company car is taxed at only 0.25% of the gross list price per month.
If the gross list price of the electric car exceeds the €70,000 limit, the 0.5 percent rule applies. In direct comparison: For conventional company cars with combustion engines, 1% of the list price is taxed monthly as a non-cash benefit.
0.5% regulation for hybrids in 2025:
Plug-in hybrids can benefit from the 0.5% rule – but not from the 0.25% rule, which is reserved for pure electric cars.
Requirements (both must be met):
Minimum electric range : at least 80 km (since 2025)
Maximum CO₂ emissions : maximum 50 g/km
If a plug-in hybrid does not meet these criteria, the normal 1% rule applies as for combustion engines.
Conversely, this means that full or mild hybrids do not receive any tax advantages because they do not support external charging and do not generate sufficient purely electric range.
e-car subsidies 2025: What does this mean for mild hybrid vehicles?
BAFA subsidies for plug-in hybrids were completely eliminated as of January 2023. The environmental bonus for all electric vehicles was also abruptly canceled in December 2023, further reducing the financial attractiveness of e-cars. The result is a massive decline in new registrations of electric cars in 2024 compared to the previous year. This is only right for manufacturers, as they have already met their targets for reducing their vehicles' emissions by the end of 2024. According to an analysis by Dataforce for the first half of 2024, the automotive industry is consistently on track to meet targets. Seven of the 10 largest companies are already below their fleet CO2 emissions targets. The VW Group, the Renault-Nissan-Mitsubishi Alliance, and Ford are still slightly above target, but should be able to achieve the remaining required 1-2 g/km reduction in the second half of the year. Further stricter limits will only apply from 2025 onwards, so it can be assumed that more environmentally friendly electric cars will be promoted more intensively next year.
When does a hybrid become profitable?
The financial savings are completely nonexistent compared to either a combustion engine or a purely electric car. In the city and on short journeys, there is a slight fuel saving. On the highway or cross-country, hybrids have a relatively high base consumption. With a total mileage of up to 15,000 km per year, the fuel savings can add up, but they fall far short of the cost savings of a purely electric car. Furthermore, tax savings and savings on maintenance costs are lost, as hybrids are classified as combustion engines. Therefore, a hybrid only makes sense if the initial purchase price is significantly lower than that of an electric car. However, this advantage only lasts for a short time.
Which manufacturers rely on mild hybrids?
However, some automakers aren't ready to commit to a particular model at this point. They're continuing to bring new hybrid models to market. Why? Because there's a strong demand for hybrid cars, especially in Europe, and especially in Germany.
Toyota is a pioneer in hybrid technology. The Japanese manufacturer offers eight different hybrid models, including the Toyota Corolla , the Yaris , and the RAV4 . Nissan also offers its popular Qashqai as a mild hybrid version. Of course, renowned German car manufacturers such as Audi are also relying on "all-in-one" technology because they know the needs and wishes of their customers here. The Chinese manufacturer BYD is also now presenting a new plug-in hybrid, the BYD SEAL U DM-i, which promises a range of over 1,000 km.
Conclusion: Is a mild hybrid a sensible choice in 2024? Not really!
We won't be able to tackle climate change with mild hybrid vehicles alone. These are and will remain combustion engine vehicles with a supporting electric motor. The cost savings are only marginal and not always; the CO2 savings are only slight. So why should we settle for half measures when purely electric vehicles (BEVs) can do so much better? Skepticism alone is causing many to doubt the new technology. We are in a transitional phase, and that is precisely what hybrid cars are for – as an interim solution to ease the conscience of having taken at least a small step towards electric drive. Experience shows, however, that drivers of hybrid vehicles will next opt for a BEV. For those who want a long-term solution with maximum effect in terms of cost savings, emission avoidance, and driving pleasure, we recommend the 100% electric version – no half measures.
