In February, there was a significant shift in the European automotive market as plug-in hybrid vehicle sales outpaced those of battery-electric vehicles, marking a departure from the prevailing trend.

Data released by the industry association ACEA revealed a notable increase of 12 percent in plug-in hybrid sales last month, reaching a total of 72,376 units compared to February 2023. In contrast, sales of battery-electric vehicles experienced a slightly lower growth rate of 10.3 percent during the same period.

Preliminary figures from market analyst Dataforce, excluding statistics from several smaller countries, indicated that both plug-in hybrids and battery-electric vehicles exhibited similar growth rates. Specifically, full-electric car sales rose by 11 percent, while plug-in hybrids saw a growth rate of 10.9 percent, according to Dataforce data.

Importantly, plug-in hybrids surpassed the overall market growth rate of 10.3 percent, as reported by ACEA. Similarly, Dataforce figures indicated a market growth rate of 10.3 percent.

The surge in plug-in hybrid sales can be attributed to their role as a transitional technology towards full electrification, particularly as growth in battery-electric vehicle sales slows down. Automakers are increasingly turning to plug-in hybrids to meet their CO2 emissions targets, with the latest models boasting WLTP emissions as low as 19 grams per km and offering more than 100 km of electric-only range.

However, critics argue that plug-in hybrids, often viewed as "compliance" vehicles, may have higher real-world emissions due to users' failure to keep them fully charged. To address this concern, the EU has initiated monitoring of plug-in hybrids with onboard diagnostics and is expected to revise their homologation requirements in the future.

Despite these challenges, executives at Europe's premium brands anticipate stable or increasing plug-in hybrid sales. BMW's sales chief, Jochen Goller, expressed confidence in the steady performance of plug-in hybrid sales in 2024, with potential growth in full-electric models. Similarly, Audi CEO Gernot Dollner and Mercedes CEO Ola Kallenius emphasized their commitment to electric mobility while acknowledging the importance of maintaining flexibility in response to market dynamics.

In a further indication of the continued relevance of plug-in hybrids, Chinese automaker BYD announced plans to introduce a plug-in version of its Seal midsize SUV in Europe, expanding its offerings beyond electric vehicles.

While plug-in hybrid sales lagged behind the market in 2023, there are signs of resurgence. Market share for plug-in hybrids in the EU stood at 7.7 percent at the end of 2023, reflecting a 7 percent decline from the previous year. However, in February, their EU market share was 7.3 percent, fueled by a surge in sales of full-hybrid models.

The best-selling plug-in hybrids in February included the Volvo XC60, Porsche Cayenne, Mercedes GLC, Ford Kuga, and BMW X1. Bjorn Annwall, Volvo Cars' chief commercial officer, highlighted the company's focus on mild- and plug-in-hybrid models, recognizing them as a stepping stone for consumers transitioning to full electrification.

In conclusion, while challenges remain, plug-in hybrids continue to play a significant role in the automotive market's transition towards electrification, offering a viable solution to meet emissions targets while providing consumers with a practical alternative to traditional internal combustion engines.