T&E Test: PHEVs from BMW, Peugeot, and Renault emit too much CO2

Seventy Percent of PHEVs are Company Cars

In Germany, seven out of ten new PHEVs are registered in the company car market. The BMW 3 Series ranks third among the most popular models. Incentives for the high sales of PHEVs in the company car market are mainly the privileges in company car taxation, where, compared to combustion engines, only half of the gross list price is considered a monetary benefit for PHEVs. Studies confirm that company car PHEVs drive the most miles in combustion mode and are rarely charged. Tests with an empty battery showed that models from BMW, Peugeot, and Renault emitted five to seven times the stated CO2 emissions on the road. Concretely, this means that the official CO2 emissions of the three tested PHEVs should actually be between 85-114 g/km.

Geofencing: Useless if Consumption Increases Outside

The tests also cast doubt on the effectiveness of BMW's new eDrive Zones technology, which is supposed to automatically switch the PHEV to emissions-free electric driving in cities. During the test within the city of Graz, the BMW 3 Series still switched on the combustion engine twice. The tests also suggest that the BMW might save battery charge outside cities in case the vehicle later enters a so-called geo-fencing zone. According to T&E, the current geo-fencing technology thus does not guarantee emissions-free driving in cities and carries the risk that CO2 emissions might increase outside such zones. The Munich manufacturer announced in 2020 that it plans to bring seven million vehicles with PHEV drive onto the roads by 2030.

The federal government subsidizes PHEV company cars, which emit significantly more CO2 than officially stated, with 1.2 billion euros in 2023 and 2024 alone, according to T&E analyses. But private car owners are also affected by the hidden extra costs of operating plug-in hybrids. The electric range is often less than stated, and actual fuel consumption is higher.

“Plug-in hybrids prevent Germany from achieving its national climate goals and bringing 15 million fully electric cars onto the roads by 2030. The federal government has agreed in the coalition agreement to reform the company car taxation for PHEVs. Their blanket privileging should be reversed in the upcoming climate protection immediate program and their taxation should be based on their true environmental impact. Only then can the federal government finally abolish these environmentally harmful subsidies," appealed Friederike Piper.

PHEVs Weaken European Clean Car Regulations

In 2022, PHEVs will have reduced the fleet average of automakers' CO2 emissions more than any other flexibility in the CO2 regulation. Due to the unrealistically low CO2 value of PHEVs, the monetary value of selling PHEVs for automakers is large, T&E notes. And it calculates that in 2022, this adds up to:

• BMW: 0.9 billion euros or 8,200 euros per PHEV
• Stellantis: 1.3 billion euros or 9,300 euros per PHEV
• RNM: 0.3 billion euros or 6,900 euros per PHEV

The sale of PHEVs with artificially low CO2 emissions also means that fewer BEVs need to be sold for automakers to meet CO2 targets. For the three automakers, 247,000 fewer BEVs would need to be sold, which corresponds to 22% of BEV sales in 2022.

Automakers Benefit from PHEV Subsidies

The benefits for automakers are not limited to meeting CO2 targets. T&E estimates that in 2022 alone, around 350 million euros in subsidies will be paid for the purchase of PHEVs for the three automakers. While Germany, responsible for the majority of the subsidy spending, has cut PHEV subsidies from 2023, other member states like Spain plan to continue supporting the sale of PHEVs, despite numerous indications that these cars do not deliver the promised climate benefits, criticizes the NGO. This all comes at a high cost to consumers, as it is, on average, cheaper to own a BEV than a PHEV in the EU. T&E's analysis of comparable BEV models shows that owning a Tesla Model 3 over a BMW 3 Series would save 2,600 euros over four years, the Citroën eC4 over a Peugeot 308 4,800 euros, and the electric Renault Megane over the PHEV version 1,300 euros.

No Improvement Over the Years

The results of the T&E tests show that PHEV models do not significantly improve in CO2 savings and cannot guarantee emissions-free driving in the city. Policymakers should take action and ensure that PHEVs are not equated with BEVs when it comes to entering environmental zones, demands the NGO.