Europe Hybrid Vehicle Market Report and Forecast 2025-2034

Europe Hybrid Vehicle Market Size

The Europe hybrid vehicle market is projected to grow at a CAGR of 8.3% between 2024 and 2032.

Europe Hybrid Vehicle Market Outlook

• Italy, in its bid to increase alternative fuel consumption, provides purchase subsidies of up to EUR 4,00 for low-emission vehicle purchases.

• As per the European Union, Germany reduces the taxable amount for Hybrid EVs with a gross list price of up to €60,000.

• As per the European Union, France provides purchase subsidies of up to EUR 3,000 on the purchase of low-emission vehicles.

Europe Hybrid Vehicle Market Growth

Growth in the Europe hybrid vehicle market is boosted by full hybrid vehicles which feature more robust electric motors for enhanced performance.

Full hybrids are also called self-charging hybrids. They have a stronger electric motor and battery system than mild hybrids. Full hybrids can run on electricity only at slow speeds, usually while driving through cities or in heavy traffic. Based on current driving conditions, they smoothly switch between the internal combustion engine and the electric motor to reduce fuel consumption and emissions.

Hybrid vehicles in the domestic region are likely to do well given government subsidies and rising concerns among citizens regarding sustainability and climate change. As of May 2024, BMW planned to invest USD 2.8 billion in China.

Plug-in hybrid vehicles (PHEVs) provide the longest range of all kinds of hybrid cars that can be driven on electricity alone. This type of car has larger battery packs which can be recharged by plugging into an external electrical source such as a wall socket or charging station. As more charging stations appear throughout Europe together with incentives for buying EVs being offered by governments hybrid electric vehicles are likely to do well.

Europe Hybrid Vehicle Market Segmentation

Europe Hybrid Vehicle Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Electric Powertrain Type

• Parallel

• Series-Parallel

Market Breakup by Hybrid Type

• Micro Hybrid

• Mild Hybrid

• Full Hybrid

• Plug-in Hybrid

Market Breakup by Vehicle Type

• Passenger Cars

• Commercial Vehicles

Market Breakup by Country

• Germany

• United Kingdom

• France

• Italy

• Others

Europe Hybrid Vehicle Market Share

Passenger cars lead growth in the hybrid vehicle market in Europe given that they are equipped with both an internal combustion engine and an electric motor, they are gaining popularity owing to increasing environmental awareness and government incentives along with stricter environmental regulations regarding emissions.

Leading companies in the Europe Hybrid Vehicle Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and the latest developments like mergers and acquisitions, investments, and capacity expansion.

• BMW AG

• Ford Motors Company

• Mercedes Benz Group AG

• Hyundai Motor Company

• Kia Motors Corporation

• Toyota Motor Corporation

• Volvo AB

• Volkswagen AG

• Honda Motor Co. Ltd.

• Nissan Motor Co. Ltd.

• Dr. Ing. h.c. F. Porsche AG

• Others

Growing outreach by major market players is largely due to technological advancements which help enhance battery energy density, charging efficiency, and battery longevity. Emphasis on sustainability and government incentives for the purchase of hybrid vehicles also helps the industry grow.

Key Highlights of the Report