Plug-in hybrids have passed diesel cars in European new-car registrations for the first time on record, marking a major shift in one of the world’s most important auto markets. According to data provided by the European Automobile Manufacturers’ Association (ACEA), PHEVs reached roughly 9.4% of new-car sales across the EU, EFTA and the UK over the first ten months of 2025, while diesels fell to around 8%, a stunning reversal for a powertrain that once dominated more than half the continent’s market. The shift comes as European buyers gravitate toward electrified models that offer more flexibility than fully electric cars.
The milestone follows rapid product rollouts, including new long-range plug-in hybrid sedans, as automakers respond to increasingly strict EU emissions rules and cooling enthusiasm for diesel.
Diesel’s Collapse Opens the Door for PHEVs
Diesel has been on the decline for nearly a decade, but 2025 is the year it finally gets overtaken by a powertrain that was barely around in Europe just fifteen years ago. Stricter emissions rules have made diesel cars more costly to design and certify, and after years of high-profile emissions scandals, people just aren’t as keen on them anymore.
On the flip side, plug-in hybrids (PHEVs) have been getting a boost from tax breaks, exemptions from low-emissions zones, and better technology. Today’s PHEVs can go much further on electric power alone compared to older models, with many new ones able to handle daily commutes without needing to switch to petrol. For drivers who aren’t quite ready to go fully electric, or who live in areas where charging points are scarce, a PHEV offers a practical middle ground between flexibility and reducing emissions.
This shift is part of a bigger uncertainty in the EV market worldwide. Even top luxury brands are rethinking their plans; Bentley, for example, has recently pulled back from its full-EV commitment.
Why It Matters
The data shows a decisive reordering of Europe’s powertrain hierarchy. PHEVs now sit ahead of diesel, and regulators expect the gap to widen as Euro 7 standards take effect and more countries plan to phase out pure combustion engines. For automakers, the message is clear, that diesel’s long-term future in Europe is effectively over. Manufacturers still invested in diesel technology will either pivot toward plug-ins or reserve diesel for commercial fleets where demand remains stable.
For us, the shift reflects practicality. PHEVs offer the reassurance of a gasoline engine with meaningful electric capability, this is an appealing middle ground in a landscape where charging access varies widely between countries and regions. If PHEVs continue growing at their current rate, they may become the default transitional drivetrain for Europe’s path toward electrification, with diesels fading into a niche role much sooner than once expected.
