Hybrid Vehicles Surpass Petrol Car Sales in the EU for the First Time

In a significant market shift, hybrid vehicles have surpassed petrol cars in new vehicle sales for the first time in the European Union in September. Hybrid vehicles accounted for 32.8% of all new vehicle registrations, while the market share of petrol cars fell to 29.8%.

Data released by the European Automobile Manufacturers Association (ACEA) indicate a growing trend towards electrification in the automotive sector. The total number of vehicles sold in the EU decreased by 6.1% compared to the same period last year, marking two consecutive months of decline not seen since July 2022. This drop in vehicle sales occurred amid economic stagnation in key markets such as Germany, France, and Italy.

Electrified vehicles, including battery electric (BEV), plug-in hybrid (PHEV), and hybrid electric (HEV) vehicles, comprised 56.9% of all new passenger car registrations in September, an increase from 50.3% last year. ACEA highlighted that hybrid electric vehicles have become a popular choice for consumers seeking an affordable middle ground between traditional internal combustion engines and fully electric vehicles.

Despite the overall rise in electrified vehicle sales, the fully electric and plug-in hybrid vehicle market experienced a slowdown this year, partly due to inconsistent green incentive policies across European countries. Additionally, the EU has imposed significant tariffs to restrict the influx of lower-priced Chinese electric vehicles.

Battery electric vehicle sales increased by 9.8% year-on-year in September, though sales volumes have fallen by 5.8% since the beginning of the year. In contrast, hybrid electric sales rose by 12.5% compared to last year.

Among European automakers, Volkswagen reported a marginal sales increase of 0.3%, while Stellantis and Renault saw declines of 27.1% and 1.5% in registrations, respectively. ACEA's Director General Sigrid de Vries commented on the market's current state, saying, "Today's figures show that we are still far from the thriving EV market that Europe needs. This is not the stable and reliable market growth required for a successful green mobility transition."

This shift toward electrification is occurring as European carmakers contend with sluggish demand and increasing competition from Chinese firms. In early October 2024, EU member states approved the imposition of import duties of up to 45% on Chinese-made electric vehicles, a move seen as a response to allegations that Beijing is providing unfair subsidies to its manufacturers. Beijing denies these claims and threatens retaliatory measures.