Hybrid Car Demand Surges in Europe, Reshaping Auto Industry

The European automotive market is undergoing a significant shift, driven by increasing demand for hybrid vehicles. In January 2025, hybrids accounted for 34.9% of new car registrations, confirming their growing popularity. This trend is reshaping the industry, pushing manufacturers to adjust production and investment strategies. With sales of gasoline (-18.9%) and diesel (-27%) cars declining, hybrids are emerging as a transitional solution. Toyota and Renault are benefiting from this trend, while Stellantis is struggling to keep pace. Electric car adoption remains below EU targets, accounting for only 15% of registrations in January 2025, falling short of the 25% target for 2025 and the 100% goal for 2035. The ACEA advocates for flexible CO2 emission regulations to support the transition without harming the automotive industry.