In 2024, hybrid vehicles have taken the lead in the European automotive market, capturing 30.9% market share amid a decline in electric vehicle sales, which dropped to 13.6%. High electric model prices and reduced subsidies in Germany have contributed to this shift. Brands like Toyota-Lexus and Renault saw sales growth, while the overall market showed a slight year-on-year increase of 0.8%, with Volkswagen performing well, despite some manufacturers facing challenges.
Hybrid Cars Dominate the European Market in 2024
In 2024, hybrid vehicles have emerged as the frontrunners in a sluggish European automotive market, as reported by the manufacturers’ lobby, ACEA. This year marks a notable decline in the market share of electric vehicles, which fell to 13.6%—a decrease from 15.9% in December—signifying the first downturn since the market’s surge in 2020. High purchase prices of electric models, compounded by the removal of subsidies in Germany, the largest market in Europe, have contributed to this shift. The electrification landscape, however, varies significantly across different countries and brands.
While electric vehicle sales have continued to thrive in Belgium, Denmark, and the Netherlands, the introduction of more affordable models in 2025 may spark a rebound. Meanwhile, in the UK, ambitious sales targets have resulted in a remarkable 21.4% increase in electric vehicle sales. Notably, Tesla, a pioneer in the electric car sector, experienced a 13.1% decline in sales within the EU, while Volvo enjoyed a 28% increase thanks to the launch of new electric offerings.
Hybrids: The Bridge to Full Electrification
Hybrids have outpaced electric vehicles, capturing 30.9% of the market share (up from 33.1% in December). These versatile and cost-effective models, which combine a gasoline engine with a small electric battery that charges during driving, allow for a limited amount of emission-free driving. Hybrids are encroaching on the territory of gasoline models, which saw a 4.8% decline, and even outperformed them in the last four months of 2024. Diesel vehicles continued their downward trend with an 11.4% decrease, though some Eastern European markets exhibited resilience.
Brands such as Toyota-Lexus and the Renault group, known for their hybrid technology, reaped the rewards of this trend, achieving sales increases of 17.5% and 1.9%, respectively. Fabrice Cambolive, the director of the Renault brand, described hybrids as “the antechamber to the transition to electric.” After establishing a stronghold in the large SUV segment, hybrids are now making strides in smaller models like the Captur and Clio, particularly in markets like Italy and Spain that remain cautious about fully electric options.
ACEA’s Director General, Sigrid de Vries, has urged the European Union for a more flexible approach to its greenhouse gas emissions policy. The automotive industry faces “existential” challenges, with some manufacturers announcing job cuts amid stagnant growth in the electric vehicle market. De Vries emphasized the need for realistic adaptation to current market conditions, stating that the EU cannot maintain rigid targets without acknowledging the industry’s realities.
Overall, the automotive market in the EU remained stable year-on-year, with a slight increase of 0.8%, totaling 10.6 million new car registrations. However, this figure still falls short of pre-Covid levels. Countries like France, Germany, Italy, and Belgium saw a drop in new registrations, while Spain, Portugal, and Poland reported a sales increase. Market leader Volkswagen achieved a 3.2% growth, largely due to the success of its Skoda brand, while Stellantis faced a decline of 7.2% in sales driven by Fiat and Opel’s performance.