Gas-hybrid powertrain vehicles outpace the market in Europe as the big winner in a market that declined 1.9% year-on-year in the first quarter of 2025.
Data from the European Automobile Manufacturers’ Assn. (ACEA) shows new-vehicle registrations for the month of March recorded a slight year-on-year decline of 0.2% as “the global economic context remains particularly challenging and unpredictable for auto makers,” its report suggests.
Meanwhile, the battery-electric-vehicle market share stands at just 15.2% of the market, far below the European Union’s targets that have been postponed for three years in the hope that consumer demand may increase enough to get automakers off the hook from potential billions in regulatory fines.
However, hybrid vehicles, both self-charging and plug-in models, continue to grow in popularity, retaining their place as the most popular power type among consumers.
First-quarter figures show new registrations of gas-hybrid cars rising 20.7%, driven by significant growth in the four biggest markets: France, up 47.5%; Spain, 36.6%; Italy, 15.3%; and Germany rising 10.5%. This led to 964,108 units registered in the first quarter of 2025, representing 35.5% of the EU market share.
With 779,817 new cars registered so far, the market share for gasoline ICE-powered vehicles dropped to 28.7%, down from 35.5% during the same period last year. Similarly, the diesel car market declined 27.1%, resulting in a 9.5% market share.
By the end of the first quarter, gasoline-car registrations saw a decline of 20.6%, with all major markets showing decreases. France experienced the steepest drop, with registrations plummeting 34.1%, followed by Germany, down 26.6%; Italy falling 15.8%; and Spain down 9.5%.
Registrations of plug-in-hybrid cars (PHEVs) grew 1.1% in Q1, with a total of 207,048 units. This was primarily driven by significant increases in volume in key markets such as Germany, up 41.8%, and Spain, up 30.7%. As a result, PHEVs represented 7.6% of total car registrations in the EU, up from 7.4% in Q1 2024.
March registrations for gas-hybrids rise 23.9% year-on-year; for PHEVs, 12.4%; and BEVs, up 17.1%.
