As of 2025, plug-in hybrid vehicles (PHEVs) have secured a 9.4% market share, surpassing diesels, which now account for just 8% of new car sales. This marks a dramatic shift in the European automotive landscape, signaling the continued decline of diesel engines and the growing prominence of hybrid and electric alternatives.
The fall of diesel in Europe is a trend that has been unfolding for years. Diesel engines, once the dominant force in European car sales, have seen their market share erode since their peak in the 2010s.
Factors such as stricter emissions regulations, the Volkswagen emissions scandal, and increasing consumer demand for greener alternatives have contributed to this decline. In 2025, the rise of PHEVs is the latest indication that the days of diesel dominance are well and truly over.
Diesel’s Steady Decline
Diesel engines once commanded more than 50% of new car sales across Europe, a position they held for years. However, this dominance began to wane in the 2010s, with the turning point coming in 2017, when gasoline cars outsold diesels for the first time since 2009.
The decline was further accelerated in 2021, when self-charging hybrid vehicles outpaced diesels in sales. By 2022, electric vehicles surpassed diesels in demand. According to the European Automobile Manufacturers’ Association (ACEA), the trend is expected to continue, with diesels falling to fourth place by 2025, reports Motor1.
Several factors have contributed to this shift. Stringent emissions regulations have pushed automakers to develop cleaner alternatives, such as hybrids and fully electric vehicles, while diesels have become less common in small-car segments.
Additionally, incentives for electrified vehicles and tax benefits for greener cars have made hybrids and electric vehicles more appealing to consumers. The fallout from the Volkswagen emissions scandal, which tarnished diesel’s reputation, also played a significant role in the decline.
The Rise of Plug-In Hybrids
In 2025, PHEVs have emerged as the clear leader in the shift away from diesel. With a 9.4% market share through the first ten months of the year, PHEVs have now surpassed diesel vehicles, which only accounted for 8% of new car sales. This marks the first time PHEVs have outsold diesel cars in Europe, with the trend gaining momentum since the middle of the year.
PHEVs are seen as a practical alternative to traditional combustion engines, offering consumers the ability to drive on electric power for shorter trips while still relying on gasoline for longer journeys.
The increasing availability of affordable hybrid models from a range of manufacturers has made PHEVs an attractive option for a wide variety of drivers. As emissions regulations continue to tighten and consumer preferences shift toward greener vehicles, PHEVs are expected to maintain their strong market position in the coming years.
The Future of the European Car Market
Looking ahead, the rise of PHEVs and fully electric vehicles is expected to continue, especially as automakers introduce more affordable electric models. According to the ACEA, hybrids now make up more than a third of new car registrations in the EU, EFTA, and the UK, with a 34.7% market share. This surpasses gasoline vehicles, which account for 26.9% of new car sales, and electric vehicles, which have an 18.3% share.
This shift is driven not only by stricter emissions standards but also by an influx of new models from both traditional manufacturers and new entrants, such as Chinese automakers. Renault, for instance, has introduced the Twingo E-Tech electric, and Volkswagen plans to launch an ID. Polo next year, followed by an entry-level electric model in 2027.
