The reasons which explain the state of grace of hybrid engines in France

In Europe, Renault has become the second seller behind the Japanese Toyota, the originator of this technology, which is more environmentally friendly and barely more expensive than traditional gasoline and diesel engines. It consists of equipping the powertrain with a low-capacity electric battery, the role of which is to recover the energy generated during braking and then reinject it into traction by supporting the main internal combustion engine. This operation makes it possible to reduce CO2 emissions generated by moving the vehicle, particularly in town at low speeds.

A jump in hybrid registrations

Taking a closer look, the hybrid engine is the big winner of the year 2024 on the automobile market. This technology was the most registered engine in France, recording a real leap, according to data from AAA Data for the Automotive Platform (the PFA, the French association which represents the interests of the automotive industry). When sales of purely electric vehicles stagnated at 16.9%, and those of diesel and gasoline declined to 7.3% and 29.5% market shares respectively, hybrids represented 42.8% of sales in 2024, or 9.3 points more than a year earlier.

In detail, registrations of vehicles with mild and full hybridization (in the second case, the small added battery allows the vehicle to be towed alone for a few kilometers) are both up 5 points compared to 2023. January 16, European grid data are not yet available. But there is little doubt that the hybrid has attracted more consumers in the European Union than in the past. Technology is expected to narrowly fall second on the podium, behind gasoline. Over the first eleven months of the year, it stood at 30.7% market share, up 5 points.

How to explain this growth? The hybrid is both popular with consumers looking for affordable mobility and pushed by manufacturers, obliged to green their products by regulations. “Supply and demand maintain each other, while electricity stagnates» due to the drop in subsidies for the purchase of battery vehicles in European countries (and particularly in Germany), analyzes Arnaud Aymé, at Sia Partners. The expert recalls that thermal and electric vehicles “have not yet reached price parity“. For example, the new Citroën C3 is available from 14,990 euros in gasoline or hybrid. For an electric version, you have to pay 23,300 euros (excluding ecological bonus).

This gap is, however, more visible on entry-level vehicles than on premium models. A Peugeot 5008 is thus available from 40,990 euros in hybrid engine (136 hp e-DCS6) and rises to 45,490 euros in rechargeable hybrid version (195 hp e-DCS7) when its purely electric version starts at 46,990 euros for the smallest autonomy (502 kilometers in WLTP 210 hp battery 73 kWh) and 51,490 euros for the large autonomy (668 kilometers, 230 hp 97 kWh battery).

23% of the European market in 2030

If manufacturers work hard to reduce this delta, the hybrid should remain popular in the years to come. The latest forecasts from the firm AlixPartners (which apply to wider Europe including the 27 and thirteen other countries on the continent) announce that the hybrid should continue to account for 23% of the market in 2030, more than the 20% recorded in 2024. On the same horizon, electric should increase from 12 to 41% in its trajectory towards 100% electric in 2035 in Europe.

Proof that the hybrid belongs to the future, many automobile manufacturers are working to enrich their product portfolio. “The lower-than-expected growth rate in demand for electric vehicles has disrupted the investment and product strategies of manufacturers globally. Many of them are reducing their investments in electric vehicles and focusing again on hybrid technology,” noted data specialist S&P Global in a note published at the end of 2024. This is the case for Mercedes- Benz, Volvo or even Hyundai. The Korean manufacturer announced during its last investor day its intention to double its range of hybrid products from 7 to 14 models.

Dacia accelerates on the hybrid

The Renault group, although it has not really slowed down its investments in electricity, is banking heavily on the hybridization of its vehicles. Its flagship model, the Clio, was entitled to its hybrid version from 2020. The good health of its financial balance sheet depends on it: car manufacturers could be hit with heavy fines if they do not respect average emissions standards of CO2 set at 95 grams per kilometer for each vehicle since January 1. The automobile group, which will launch seven new vehicles in 2025, will “hybridize” new models, such as Dacia’s Bigster SUV.

The hybrid seems poised to establish itself as the new standard for thermal vehicles. If Peugeot (Stellantis group), friends promoted the electric version of the 3008 during its launch, the successful Lion model, which has just crossed the 100,000 order mark, nevertheless remains mainly sold as a hybrid and plug-in hybrid ( which was launched late at the end of 2024). Aware of consumer demand, Stellantis has announced increases in its hybrid offerings for its volume brands from 2025 but especially from 2026. Volkswagen, the European market leader, will do the same. While waiting for the emergence of electric, the hybrid should still reign supreme in 2025.