Important: Hungary to revoke green number plates from hybrid vehicles

Hungary is revamping the incentive system associated with green number plates. From 1 September, only fully electric and zero-emission vehicles will be eligible for green number plates. Owners of plug-in hybrid vehicles and those classified in the extended-range environmental category will need to replace their green plates by 30 November 2026.

The first car to receive the green number plate, the BMW i3 electric car in Budapest on 13 October 2015. Photo: MTI/Marjai János

Since January 2016, plug-in hybrid vehicles (PHEVs) have enjoyed significant incentives on par with zero-emission vehicles such as fully electric and hydrogen-powered cars. However, the past eight years have yielded mixed results regarding the environmental value of this technology and the vehicles using it, iho.hu reports.

Hybrid vehicles more polluting than initially expected

The European Court of Auditors has monitored the general operational practices and related emissions of plug-in hybrids on the roads in recent years. They found that the real-world emissions of these hybrids are 3 to 5 times higher than those measured in laboratory conditions. This discrepancy is attributed to the more frequent and intensive use of internal combustion engines in these vehicles than anticipated.

Additionally, the past years have seen a rise in vehicles with larger internal combustion engines than the average petrol or diesel cars, which, combined with electric propulsion, qualify for the same incentives as zero-emission vehicles. However, these are often more polluting than typical fossil fuel-powered vehicles.

Given the higher environmental impact of plug-in hybrid technology compared to zero-emission vehicles and the fact that it allows luxury SUVs to benefit from green car incentives, the Ministry of Construction and Transport (ÉKM) has deemed it unjustifiable to maintain the same level of incentives for both zero-emission and plug-in hybrid vehicles.

Hybrid vehicles to be stripped of their green plates

According to a government decree, from 1 September 2024, only fully electric and zero-emission vehicles will be eligible for green number plates upon their first domestic registration, iho.hu writes. Owners of less environmentally friendly vehicles—classified as 5P (plug-in) and 5N (extended range) hybrid electric vehicles—must initiate the replacement of their green plates with white ones by 30 November 2026.

Consequently, the tax incentives associated with green number plates are also under review, marking the end of the era for luxury SUVs with green plates.

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