From the outside, it's hard to distinguish between the PHEV and the regular Mitsubishi Outlander. Under the skin, though, they're very different. Instead of a diesel engine, the PHEV (Plug-in Hybrid Electric Vehicle) has a petrol one which drives the front wheels. An electric motor does that too, and a second one drives the rear. The battery pack which provides power for the motors can be recharged using a mains supply.

Like all plug-in hybrids, this one has absolutely spectacular official fuel economy and CO2 figures, though their relevance to real-world motoring is open to question. Be that as it may, the Outlander PHEV is extremely cheap to tax, which is probably the most compelling reason to buy one. All versions have automatic transmission and are in fact mechanically identical, the differences being limited to equipment levels.

Although it was only launched in April 2014, Mitsubishi is adding some new features to keep the model fresh, including new interior equipment, slightly improved efficiency and fuel economy as well as a new front-end design.

Performance

The combined power output of the 2.0-litre petrol engine and front and rear motors is 200bhp, but the PHEV is also at least 200kg heavier (the exact figure depending on which diesel model you're comparing it with).

The Outlander now takes 11.0 seconds to reach 0-62mph, but more importantly, it has shaven 2.0 seconds off its zero to 25mph sprint time – which becomes apparent when driving in the city. The instant thrust of the electric power will certainly put a smile on your face. Put your foot all the way down and the 2.0-litre petrol engine will kick-in.

According to Mitsubishi, the PHEV can achieve an all-electric range of 32.5 miles travelling at speeds of up to 70mph. You will get closer to this range if you keep motorway driving to a minimum, activate eco-mode and utilise the regenerative braking. The regenerative braking has five different levels of severity, with number five renewing the most electric charge back into the battery. There is a new feature that activates the brake lights when levels four and five are selected, for added safety.

Ride and Handling

That means that the PHEV is still not going to excite enthusiasts. In fact, with its silent nature, it almost feels out-of-place throwing it into a bend.

Although Mitsubishi has retuned the suspension and made it slightly stiffer – in an effort to make it sportier - you can’t really tell the difference. That means that the PHEV is still not going to excite enthusiasts. In fact, with its silent nature, it almost feels out-of-place throwing it into a bend. The suspension can be unsettled at times as well, especially if you hit several bumps in quick succession. With that said, cruising around town is incredibly comfortable.  The PHEV copes well with light off-roading, though nobody who takes this sort of thing seriously will give it a second glance. The towing capacity with a braked trailer is 500kg short of what the diesels offer at 1,500kg.

Interior and Equipment

The Mitsubishi Outlander PHEV was a finalist for the 2014 World Green Car of the Year award.

The Outlander was designed from the start to take a hybrid powertrain, so the PHEV isn't badly compromised in terms of interior space. With that said, it isn’t available with seven-seats (unlike the diesel) due to the extra space required for the electric powertrain. With the rear seats up, its luggage capacity is an acceptable 463 litres. The entry-level GX2 trim available in diesel models isn't offered in the PHEV, instead the range starts with the GX3h trim. As part of its 2015 revamp, Mitsubishi has enhanced all trim levels with extra equipment. All PHEVs have 18-inch alloy wheels, cruise control, dual-zone climate control air-conditioning, Bluetooth connectivity, heated and folding door mirrors and audio controls mounted on the steering wheel. The slightly plusher GX3h+ model adds heated front seats and a pre-heater function, allowing you to heat the car via a smartphone app on a cold winter’s day. From the GX4h trim upwards they also have DAB digital radio, satellite navigation, leather seats, a sunroof, a powered tailgate and a reversing camera. On top of that is GX4hs, which adds adaptive cruise control, lane departure warning, front and rear parking sensors and a new feature called Unintended Acceleration Mitigation System. This basically stops the car from shooting forward and hitting an obstacle when stationary.

Cost

The official combined fuel economy was impressive last year for the PHEV, at 148mpg, but it is now even more so at 156mpg.

Due to their extra complexity, the PHEV Outlanders are much more expensive than the diesels, but the £5,000 Government plug-in car grant largely cancels this out, and in fact the GX3h costs exactly the same as the diesel automatic in the same trim level. The official combined fuel economy was impressive last year for the PHEV, at 148mpg, but it is now even more so at 156mpg. As always with plug-in hybrids, this figure is subject to enormous variation depending on how the car is used. Mitsubishi itself estimates that the PHEV becomes less economical than the diesel when you exceed 106 miles on a single journey. On the other hand, if you only ever use the car for short trips it's quite possible that you would never consume any petrol at all. At 42g/km – again, an improvement over last year’s model - the official CO2 emissions are a long way below the Vehicle Excise Duty threshold, and if you live outside the London congestion zone but need to drive into it regularly you'll be able to do some without paying the charge. But these issues are dwarfed by the situation presented to business customers. The Benefit In Kind rating currently stands at 5 per cent, and although it will reach 13 per cent by the 2018-19 financial year you'll still be asked to pay far, far less than anyone else who has an SUV as a company car.

Our Verdict

This is by no means the best SUV on the market – but for an affordable hybrid, it is far too good to ignore. The savings for business customers are enormous, and for some people, the Mitsubishi Outlander PHEV may be the car they've been waiting for. There are very few SUVs on the market that come close to matching the cheap running costs offered by the Outlander PHEV.