10 Cheapest Plug-in Hybrid Vehicles (PHEV) in Canada for 2025

Are you looking to ditch the gas station and embrace a more sustainable driving experience? If so, you've likely noticed a surge in the popularity of plug-in hybrid electric vehicles (PHEVs) advertised by car manufacturers. Much like battery electric vehicles (BEVs), PHEVs are revolutionizing the way we drive, and for good reason.

These innovative vehicles offer a winning combination of:

• Exceptional Fuel Efficiency: PHEVs boast impressive fuel economy thanks to their electric motors, translating to significant savings at the pump and a lighter footprint on your wallet.
• Government Rebates to Sweeten the Deal: Many PHEVs qualify for attractive government incentives at both the federal and provincial levels in Canada. These rebates can significantly reduce the upfront cost of the vehicle, making them even more enticing.

Trading Up for Savings and Sustainability

Feeling the pinch of rising gas prices? Consider trading in your gas-guzzling car for a budget-friendly PHEV. We've compiled a comprehensive list of the most affordable PHEVs currently eligible for rebates through the Canadian government's Incentives for Zero-Emission Vehicles (iZEV) Program.

But before diving into the options, let's take a closer look at what makes PHEVs such a compelling choice for eco-conscious drivers.

What is a Plug-in Hybrid Vehicle (PHEV)?

PHEVs are similar to standard hybrids in that they use both electric power and a gasoline-powered internal combustion engine. Unlike a standard hybrid, however, a PHEV can be driven solely on battery power for upwards of 25 km before switching to gas when the battery is depleted. This gives PHEVs a much greater fuel economy than standard hybrids.

Additionally, where a standard hybrid recharges its battery as you drive the car using the internal combustion engine, a PHEV can be plugged in to fully recharge its battery when the car isn’t in use. This means you can drive fully on the battery until it runs out, use gas for the rest of your driving that day, and recharge the battery overnight (or while you’re at work if your workplace has a charging station) before your next trip.

This balance of battery power with a gas engine serving as a backup means PHEVs provide excellent fuel economy ratings. You won’t entirely eliminate your trips to the pump but they’ll be far less frequent. 

Learn more about what a PHEV is and how it works

What are the most affordable PHEVs in Canada right now?

Kia Niro PHEV EX

Photo: Kia

MSRP: $39,520

Fuel economy: 2.1L/100 km Le

All electric range: Up to 55 km

The Kia Niro PHEV remains a strong contender for the most affordable PHEV in Canada after the 2024 update. It offers a good balance of electric range, fuel efficiency, and starting price. This Kia comes with the desirable EX trim which includes standard features like wireless Android Auto and Apple CarPlay, heated seats and steering wheel, and adaptive cruise control.

Toyota Prius Plug-in Hybrid

Photo: Toyota 

MSRP: $40,050

Fuel economy: 4.4/4.6L/100 km (City/Hwy) SE

All electric range: 72 km

The Prius Plug-in Hybrid continues as one of the most recognizable plug-in hybrids on the market. While its all-electric range remains modest, it stands out with outstanding fuel efficiency. Both the base and Upgrade trims come equipped with Toyota Safety Sense, offering features like automatic emergency braking, lane departure alert, and forward collision warning.

Hyundai Tucson Plug-in Hybrid

Photo: Hyundai

MSRP: $52,899

Fuel economy: 2.9L/100 km

All electric range: 53 km

The Hyundai Tucson PHEV is a stylish compact crossover PHEV with a turbocharged engine that delivers 261 hp. It also boasts a 53 km all-electric range and impressive fuel efficiency. The Tucson PHEV comes in two trim packages—Luxury and Ultimate—and both are eligible for a $2,500 government rebate under the iZEV program.

Kia Sportage PHEV EX Premium

Photo: Kia 

MSRP: $47,595

Fuel economy: 2.8L/100 km

All electric range: 55 km

The 2025 Kia Sportage PHEV EX Premium enters the list for the first time, offering a compelling option for those wanting a feature-rich PHEV with a touch more cargo space than the Niro PHEV. This Sportage comes loaded with tech features and driver-assistance features like adaptive cruise control with stop-and-go functionality, lane departure warning with lane keep assist, and blind spot monitoring with rear cross-traffic alert.

Mitsubishi Outlander PHEV

Photo: Mitsubishi 

MSRP: $48,698

Fuel economy: 3.6L/100 km Combined

All electric range: 61 km

The Mitsubishi Outlander PHEV offers a great combination of power, performance, and convenience with 248 hp, up to 680 kg in towing capacity, and a 61 km all-electric range. While it’s a little pricier than some of the other options on this list, and its fuel economy isn’t the most competitive, it makes for a compelling choice for those who need a PHEV with some towing capability. All Outlander PHEVs are eligible for a $5,000 plus provincial rebates under the iZEV program.

Kia Sorento PHEV EX

Photo: Kia 

MSRP: $50,645

Fuel economy: 2.8L/100 km (City)

All electric range: 51 km

As a member of another popular SUV series, the Kia Sorento PHEV is a versatile option for families and those who need a little extra cargo space for road trips and weekends. With 227 hp it offers SUV-like power and can still travel 51 km on all-electric mode. The Sorento PHEV is available in three trim packages, each eligible for a $2,500 government rebate. Under the hood each trim is identical, while inside the higher end EX+ and SX models offer additional convenience and infotainment options.

Ford Escape PHEV

Photo: Ford 

MSRP: $39,794

Fuel economy: 2.3L/100 km

All electric range: 60 km

The Escape PHEV is a popular choice for those wanting a PHEV in a familiar SUV body style. The 2025 Escape PHEV offers a best-in-class 60 km of all-electric range and impressive fuel economy. There are three different trim packages to choose from for the plug-in option—SE, SEL, and Titanium—and each one is eligible for a $2,500 rebate in the iZEV program.

Dodge Hornet R/T PHEV

Photo: Dodge

MSRP: $55,995

Fuel economy: 2.6L/100 km

All electric range: 53 km

The 2025 Dodge Hornet R/T PHEV continues to stand out as a sporty plug-in hybrid for drivers seeking fun behind the wheel. It features a 1.3L turbocharged engine paired with electric motors, delivering a combined 288 horsepower. Standard all-wheel drive ensures confident handling, and with a 53 km all-electric range, it helps cut down on fuel stops while offering an engaging drive.

Toyota Rav4 SE AWD PHEV

Photo: Toyota 

MSRP: $51,715

Fuel economy: 2.5L/100 km

All electric range: 68 km

The All Wheel Drive Toyota RAV4 is already one of the most popular SUVs in Canada, and the addition of a PHEV model with the RAV4 Prime was a no-brainer. With a best-in-class 68 km all-electric range and a fuel economy of 2.5L/100 km, it’s no surprise this SUV plug-in hybrid remains a popular choice. The good news with the RAV4 doesn’t stop there, either. While most of the PHEVs on this list are eligible for a $2,500 rebate under the iZEV program, the RAV4 Prime is eligible for a $5,000 rebate under the same program. Combine that with provincial rebates that may be available where you live, plus the excellent battery range, and the RAV4 Prime might be one of the most cost-effective PHEV options currently available.

Mazda CX-90 GS PHEV

Photo: Mazda 

MSRP: $54,900

Fuel economy: 4.2L/100 km

All electric range: 42 km

The 2025 Mazda CX-90 GS PHEV continues to make waves in the larger PHEV SUV segment. It features a refined, luxurious interior and a turbocharged engine paired with an electric motor, now delivering a combined 323 horsepower. With an all-electric range of about 42 km and excellent fuel economy, the CX-90 PHEV remains a top choice for drivers who need the space of a larger SUV but want to lower their carbon footprint.

Choosing the Right PHEV for You

With so many PHEVs on the market, choosing the right one for you can seem overwhelming. Here are some additional factors to consider beyond price and fuel efficiency:

• Vehicle Type: Do you need a sedan, compact crossover, SUV, or minivan? Consider your passenger and cargo space needs.
• All-Electric Range: How far do you typically drive on a daily basis? If your commute is under 50 km, a PHEV with a larger all-electric range could significantly reduce your reliance on gas.
• Features: Consider the features that are important to you, such as a sunroof, heated seats, advanced safety features like automatic emergency braking and lane departure warning, or a tow hitch.
• Cargo Space: If you need a lot of cargo space, an SUV or minivan PHEV might be a better choice for you.
• Driving Performance: How important is performance to you? Some PHEVs offer a sportier driving experience than others.
• Charging Availability: Do you have a place to charge the PHEV at home or work? If not, the convenience of a PHEV might be diminished.
• Government Rebates: Be sure to factor in the federal and provincial rebates you may be eligible for when considering the overall cost of the PHEV.

The Bottom Line: Striking the Balance Between Efficiency and Convenience 

Plug-in hybrid electric vehicles (PHEVs) occupy a sweet spot for drivers who want to make a significant environmental impact without completely overhauling their driving habits. They offer a compelling solution for those seeking:

• Reduced Fuel Costs and Emissions: PHEVs boast impressive fuel efficiency thanks to their electric motors. This translates to significant savings at the pump and a reduced carbon footprint.
• Extended Electric Range: Unlike traditional hybrids with limited electric range, PHEVs can travel a significant distance solely on battery power, often exceeding 50 kilometers. This allows for emissions-free commutes and errands for many drivers.
• Gas Engine Backup: For longer trips or situations where charging isn't readily available, the gasoline engine provides peace of mind and eliminates range anxiety, a common concern with fully electric vehicles (BEVs).

Finding the Perfect Fit

By considering the factors outlined earlier (vehicle type, all-electric range, features, cargo space, driving performance, charging availability, and government rebates), you can narrow down your PHEV options and find the one that seamlessly integrates with your lifestyle.

PHEVs: A Stepping Stone to a Greener Future

PHEVs are a crucial stepping stone towards widespread electric vehicle adoption. They offer drivers a practical and comfortable way to transition from gas-powered vehicles to a more sustainable future. As charging infrastructure expands and battery technology continues to improve, PHEVs will likely become even more attractive in the coming years.

Making an Informed Decision

The information provided here is just a starting point. We highly recommend conducting further research on specific PHEV models that pique your interest. Test driving different options will allow you to experience the technology firsthand and ensure the chosen PHEV perfectly complements your driving needs and preferences.

By carefully considering all the factors involved, you can make an informed decision and select a PHEV that not only saves you money on fuel but also helps reduce your environmental impact.