European hybrid sales overtook BEVs in 2024

JATO Dynamics reports that the new passenger car market in Europe-28 grew by 0.9% in 2024 to 12,909,741 units. 

Despite the slight uptick in registrations, 2024 was the fifth year of muted registration figures compared to pre-pandemic levels.

Since the pandemic arrived in 2020, Europe’s car market has shrunk by almost 2.9 million units.

“Overall, when you consider the range of challenges facing Europe’s automotive industry, the results for 2024 are not overly negative,” JATO Dynamics global analyst Felipe Munoz says 

“However, you would expect any other industry to have shown significant signs of recovery by now, and there is very little evidence that the automotive industry will return to the pre-pandemic reality. 

“The higher cost of vehicles, the rise of working from home, inflationary pressure on wages and the emergence of new transportation solutions are among the reasons why Europeans have stopped buying brand new cars,” he says.

Fewer electric cars, more hybrids

It was not a positive year for sales of battery electric vehicles (BEVs) in Europe, with the slowdown in growth that the industry began to see signs of in 2022, resulting in a drop in sales last year. 

BEV sales grew 107% year on year between 2019 and 2020, 63% between 2020 and 2021, 29% between 2021 and 2022, and 28% between 2022 and 2023. 

However, 1,985,996 units of new passenger BEVs were registered in EU28 in 2024, marking a year-on-year decline of 1.2%. The drop in registrations was also reflected in the market share of BEVs in Europe, which decreased slightly from 15.7% in 2023 to 15.4% last year. 

A lack of clarity about incentives for BEVs, the high average retail price of new models, low residual values, and concerns about charging infrastructure across the continent are among the reasons behind the decline. 

Despite the drop recorded last year, the situation is expected to improve over 2025 as the average price of a BEV continues to fall in Europe, mainly due to the introduction of less expensive models from mainstream automakers.

Norway maintained its poll position in 2024, with BEVs holding the largest market share (88%). It was followed by Denmark (51%), Sweden (35%) and the Netherlands (34.7%). Denmark, Belgium, Norway, Luxembourg and the Netherlands were the five countries in Europe where BEVs gained the most market share year on year. In contrast, the opposite occurred in Germany, Ireland, Finland, Romania and Sweden.

From a manufacturer’s perspective, the BEV market did not change significantly in 2024. 

The Volkswagen Group remained the top seller, with more than 427,000 units of its electric models registered in 2024. Its share of the BEV market fell slightly from 22.2% in 2023 to 21.5% last year and remains below its share of the broader new passenger vehicle market, which stood at 26.1% in 2024. 

Tesla followed in second place despite increased competition from other players and its Model 3’s inability to offset significant losses. At the same time, consumers waited for the arrival of the new Model Y. 

In third place was Stellantis, which remained among the top three producers of BEVs despite posting a 10% drop in volumes. BEVs also made up a significant part of the sales mix for BMW Group and Geely last year.

Hybrid vehicles: a halfway house?

Although not all carmakers offer fully hybrid models, the segment recorded year-on-year growth of 21% between 2023 and 2024, and all carmakers that offered fully hybrid vehicles posted growth last year.

Out of a total market of 1,529,806 units registered in 2024, Toyota accounted for 38,500 units. Almost one in two hybrid vehicles registered in Europe in 2024 had a Toyota or Lexus logo, and 75% of registrations of Toyota passenger cars were hybrid vehicles.

Renault Group followed with almost 300,000 units, up 49% yearly, while Hyundai-Kia, Nissan and Honda accounted for the rest of the top five. 

Volkswagen Group, Stellantis, BMW Group, Mercedes-Benz and Geely were a few of the

manufacturers absent from this segment.

Hybrids have become increasingly popular due to the comparatively high average retail price of BEVs and concerns about charging infrastructure. According to a recent JATO study, the average retail price of a hybrid in the Eurozone in 2024 was €42,222, compared to €62,709 for a BEV.

Model Y lost its crown

In 2024, registrations of the Tesla Model Y fell by 17% – the steepest drop among the top 36 models – as it dropped to fourth place in the model ranking and lost its crown as Europe’s best-selling vehicle. The downturn can be partly attributed to the decreasing impact of price cuts offered by Tesla last year in comparison with 2023 – a factor that helped propel it to the top spot – and increasing competition within the market. Despite the downturn, the Model Y was the best-selling car in the Netherlands, Sweden, Switzerland, Denmark and Norway last year.

Among the new cars introduced between late 2023 and 2024, 78,000 units of the Volvo EX30 were registered, as it became Europe’s third-best-selling BEV.